Development Finance
£55.5m Large Multi-Unit Development Finance Deal for Land
Purchasing land for a housing development isn’t cheap, and this client came to us seeking more than £55m. Read how we secured their finance, here.
Loan Size: £55,426,000
- Senior loan: £50,200,000
- Mezzanine: £5,226,000
Location: South East England
Loan Type: Development
Security Type: Housing development
Term: 36 Months
About the Deal
The client required funding to purchase two plots of land in Sussex. Over a two-year period, the client had worked up planning with the current owner of the land to build what will effectively be a new village. The development will include two, phased housing developments along with a commercial aspect including local shops and a school.
The Challenge
Initially the landowner agreed to put the land into the deal in exchange for an equity share and back-end profit. However, their circumstances changed and decided that they would need to sell the land outright to the developer. This created a funding shortfall, as the initial facility did not include any funds for the purchase of the land.
The Results
Within a three-week period, we successfully raised mezzanine funding to fill the funding shortfall. This, coupled with the senior debt we had already arranged allowed the client to successfully complete the purchase of the land and start developing out the scheme.