SME Business Loans | Mezzanine Development Funding

Looking to scale up your residential development projects and need capital backing?

We are looking for residential development projects that match the following for Mezzanine and Debt Funding.

Mezzanine lenders consider requirements ranging from £200,000 and up to 80% (bank debt + mezzanine) of the forecast end value.

Valuing the importance of building long term relationships with developers, mezzanine lenders offer:

Up to 75% of gross development value (GDV)
Up to 90% LTV (on current site value) and rolled up interest
Up to 90% LTC (Loan to Cost) and rolled up interest

Developer must have a track record including successful projects of a similar nature
Developer equity contribution of a minimum of 10% of the total development costs

London zones 2-6 or within a 1-hour commute
Regional cities such as Bristol and Manchester are also considered

£600-£1000 £ per sq./ft preferred
Unit values of Sub £1 million and mostly within help-buy preferred

Security includes a second charge
Profitable Scheme - minimum profit on cost of 20% after finance costs

MEZZANINE DEBT

Up to 90% of the required equity to be provided by Lender/Investors by way of a mezzanine loan under a second charge to the property

The loan will attract an annual interest charge which will vary deal-to-deal depending on risk exposure and project length

Developer to retain all remaining profit in the deal

Apply for an Equity Loan

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INFORMATION REQUIRED

Site information
Location, Maps
Building information if relevant
Planning etc

Planning review/rationale
if site without planning

Structure of deal with the landowner
if planning option or other option to purchase

Full Development Appraisal/ Financial Model
To include cash flow; property schedule and GDV supporting evidence

Developer track record / CV

With Mezzanine funding, your only challenge is finding suitably viable and profitable development projects.

Timescales:

Subject to developer agreeing Heads of Terms, lender will proceed to draw up the Facility Agreement and also undertake due diligence.
Project timelines between 12–36 months

With Mezzanine funding, your only challenge is finding suitably viable and profitable development projects

Looking to scale up your residential development projects and need capital backing?

Up to 75% of gross development value (GDV)Up to 90% LTV (on current site value) and rolled up interestUp to 90% LTC (Loan to Cost) and rolled up interest

Developer must have a track record including successful projects of a similar natureDeveloper equity contribution of a minimum of 10% of the total development costs

London zones 2-6 or within a 1-hour commuteRegional cities such as Bristol and Manchester are also considered

£600-£1000 £ per sq./ft preferredUnit values of Sub £1 million and mostly within help-buy preferred

Security includes a second chargeProfitable Scheme - minimum profit on cost of 20% after finance costs