Bespoke Acquisition/Development Finance facility for a new purchase and part complete development in Lancashire

Deal Structure

100% finance to acquire and start to develop the new site

Interest rate – 0.9% per month

Arrangement fee – 2%

Exit fee – 0.9% of facility

12 month term

Deal Summary

Our client is an experienced project manager who had recently took on their first development scheme in recent years, funded by cash. That scheme was part complete and the client wanted to use the value in it to raise 100% finance to purchase a new scheme – and also start work on that new scheme.

We needed a lender who could provide a flexible approach, due to:

• The client wanted to complete the existing scheme with their own funds
• The client only wanted a facility to begin the development of the new scheme, with their intention being to complete the development of it once the existing scheme had itself been completed and sales proceeds had been realised.

Therefore, the lender had no certainty that either scheme would be completed based on the funding they were providing.

The lender went out to meet the clients, look at both sites and took a commercial view on the loan structure/risk, resulting in the above Development Finance facility being offered, accepted and drawn down within one month of the visit.