First-time developer, joint venture funding
What was the situation?
The clients were seeking to purchase a site with planning permission for nine dwellings in Canterbury and required both senior debt and equity funding.
What was the issue?
Although the clients had strong project management experience, it was their first multi-unit scheme as a developer. As such, the key challenge was sourcing an equity partner that would take a sympathetic view with regard to their experience and then partner them with a senior debt provider with a similar approach.
What was the process?
With all our new developer clients we will arrange an initial meeting. This is a key part of the process as it enables us to understand the project and the client’s capabilities in greater detail. From this meeting we are seeking confidence in the quality of the scheme and the ability of the developer to deliver their project.
Following on from the initial meeting, we then proceed to collating as much information about the scheme and developer as possible so that we are able create a detailed presentation to potential funders.
What was the solution?
We sourced senior development finance to 65% of the gross development value (GDV) from a specialist lender along with a mezzanine loan facility from a family office. With this arrangement, the client was only required to inject less than 1.00% of the total development costs.
The clients have since commenced their development and it is progressing well. We are already discussing their next project and the funding requirements.
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As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
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