May 21st, 2021. Andrew Hosford
Deal of the Month, May 2021: £2.5m CBILS Loan for Prime London Developers
Pure Structured Finance Director, Tom Lee, recently obtained a £2.5m CBILS loan for a client, on their prime London real estate. Securing the much-needed finance was not straightforward, but by obtaining it within the deadline, we made sure the client had ample time to sell the properties.
Covid Delays and How They Can Affect Your Finance
We have seen projects affected by the Covid-19 pandemic in a variety of ways. For this client, the inability to work on-site at certain times, material supply issues and increased costs had contributed to this project falling behind schedule. This meant a shorter window to sell the properties – new finance was needed urgently to ensure the client had ample time to get the preferred return on his investment.
The Right Funding Partner
The client chose our team here at Pure Structured Finance to secure the much-needed funding due to our expertise in structuring finance in London, as well as the strong relationships we have with funders. Having discussed previous projects with the client prior to Covid, we were confident we could achieve a good result in this case.
Navigating Issues Through to Completion
Obtaining a CBILS loan for the client was not straightforward. We had to present the funding proposition carefully, as many funders tend to avoid prime London locations. Then, we had to work with the funder to ascertain the client’s CBILS eligibility.
As we continued to work with the funder, we felt the impact of Covid-19 on the property market even further. Despite the strong position of the property, exemplary finish, and positive commentary from agents in prime locations, the surveyor down valued the properties. This meant we had to work harder to ensure we could still make the deal work for the client, by negotiation the structure and gearing on the loan with the funder which was agreed at 75% as an exception.
Securing the CBILS Loan
With a little hard work and perseverance, we were able to secure a £2.5m CBILS loan for the client, which has meant there is now plenty of time for the prime London development to be sold.
“Working with Tom Lee at Pure Structured Finance has been an absolute pleasure securing funding on this development of ours. The process was seamless from start to finish and we look forward to working with Tom and his team on many more deals in the future.”
Trust Pure Structured Finance for Your Development Finance Needs
If you too are managing delays and increased costs due to Covid and require property finance for your development, trust us to secure it. With access to multiple funders, including the new recovery loan scheme, Pure Structured finance are able to advise you around all scenarios.
Why not get in touch with our experienced team today to discuss your specific needs and the options available.
Article By Andrew Hosford
May 21st, 2021
Andrew is a Director within Pure Structured Finance and a founding member of the company.
He previously spent a decade with a real estate advisory firm before launching Pure Structured Finance. He is highly experienced in arranging senior debt, mezzanine and equity finance for property investors and developers across all asset classes. His key focus is building long term relationships with clients, with a view to working closely with them and facilitating all their property funding needs.
Andrew is an established member of the finance community sitting on multiple boards including FIBA and is a regular panellist for various property awards committees.
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