£7.4 million take out facility for completed residential property development
Our client, a large developer and investor, was seeking to refinance a development facility with a long term investment facility for 22 of 152 apartments he had had recently built in a major regional city centre. The flats were initially up for sale but, following the credit crunch, holding the unsold apartments as long term investments suited the company's strategy. Although the apartments were vacant, we were able to demonstrate rental demand and arrange the facility with a guarantee from the developer in order to support the interest payment until the rent could service the debt.
The company took the view that, as a result of the current constraints in the mortgage market, rental demand was likely to grow stronger and the logical approach was to take a long term view. The takeout facility Red Chilli was able to arrange achieved that objective.
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