Mezzanine finance on part-built development
What was the situation?
I was recently approached by an experienced developer who was in the midst of building 12 residential houses in Surrey. My client was halfway through this development project but needed to raise money from this asset to assist with the purchase of a new opportunity which was due for completion soon as planning permission was about to be approved.
What was the issue?
The developer did not have sufficient equity available for the acquisition but had already spent a considerable amount on planning costs and the deposit, and so was committed to the deal. The challenge was that it can be very tricky to fund part-built developments and release equity through mezzanine finance. We were unable to use other assets my client owned as the additional security did not have sufficient equity, and so mezzanine finance on the existing development was the only option.
What was the process?
At LDN Finance, we have access to an unrivalled panel of specialist finance lenders to ensure we secure the perfect solution for our developer clients every time at market-leading rates.
As such, I conducted a deep search of the market and presented my client’s case to a variety of lenders with whom I have a particularly strong working relationship. As a result, I was able to source a funder who could provide mezzanine finance on the partially completed development to grant my client with the equity he needed to complete the purchase of the new asset.
What was the solution?
I was able to secure a fantastic deal for my client, who was extremely happy with the result. Funds were released at a competitive, market-leading rate of 14% p.a. within 2 weeks, as well as no further valuation being required.
Lending solutions with LDN Finance
Are you looking to secure mezzanine finance for a new or existing project? At LDN Finance, our expert brokers have a wealth of experience in securing development finance, working closely with our trusted network of private banks and specialist lenders to arrange bespoke funding solutions to suit your circumstances at competitive, market-leading rates. Get in touch with us today to organise an initial consultation.
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