Senior Debt

We were acting for an experienced developer looking at a well-located opportunity in the Croydon area. The client’s asset and liability position was strong and they had good experience of developments of this size and nature.

Funding requirement: ordinarily, the client would be able to source normal senior debt funding but, in this case, they had cash tied-up in other projects. Therefore, they needed to ‘gear up’ on this site as much as possible.

The scheme itself was the conversion of a vacant warehouse and office building, which was being developed under permitted development rights. The completed project would be for 20 apartments with a finished value or GDV (gross development value) of £8m.

Facility provided: we were able to structure a facility for the client that covered 85% of the total project costs including purchase, conversion costs and associated fees with a lender entry fee of 2%, a lender exit fee of 1% and an interest rate of 8% p.a. for an 18 month term.