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Development Finance for Apartment Block in Manchester. No PGs. Minimal cash investment by the Developer Client.

Deal Structure

72% Loan to GDV

Loan Amount £8,462,000

2% Arrangement Fee

9% per annum

No Exit Fees

15 Month Term

An experienced property developer Client obtained planning consent for a 66 units scheme in central Manchester.  An important requirement for the client was a facility without Personal Guarantees (“PG’s”). Positive Commercial Finance facilitated this by organising an element of the development to be pre-sold. The pre-sales were arranged so that the deposits could be used towards the build costs, and also this “de-risked” the scheme for the lender, thus allowing the Senior Debt facility to be offered without PG’s.

The Stretched Senior facility was a “Cost to Complete” facility. The deposits received from the pre-sales were to be used towards the build costs first. Once the required amount of pre -sales deposits had been taken and utilised, the Stretched Senior Development facility would “kick in” and be used to fund the development to Practical Completion.

The Developer Client purchased the site without planning and successfully navigated through the planning process to obtain the planning consent for 66 units. This increase in value from the site, due to the planning uplift, was acknowledged by the funder as developers equity in the scheme. This allowed the developer client to put in hardly any hard cash. Naturally, the developer client was very happy with the Development Finance funding package.

Contact James Waddicker

james@positivecommercialfinance.co.uk

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