Our developer client acquired a former NHS building in Suffolk, which had planning permission for a complete demolition and rebuild as student accommodation. The developer had designed a sympathetic proposal that took advantage of all their key local knowledge. They had put together a plan with the local university to enhance the scheme and to increase the number of units to satisfy the growing local demand.
Funding requirement: the developer required a senior debt facility to provide 75% of the total costs of the development scheme being purchase costs, build costs and associated professional and finance costs. The client was prepared to put in the balance of the costs from his own resources to keep the interest rate payable to 7% p.a.
Facility provided: we sourced a senior debt facility to over the 75% of cost requirement and in this instance the client paid a 2% lender entry fee, a 1% lender exit fee and a fixed interest rate of 7% p.a.