Development Property Finance Case Studies
Case Study 1
£25 million for 100% development funding (speculative)Our client required 100% finance for a phased 48-house development in this prestigious London suburb. The projection was showing a 20% return on costs. Rather than arrange a typical structured package with different lenders (senior, mezzanine and equity) requiring inter-creditor agreements and three different sets of solicitors, we were able to bring a lender new to the UK market who was able to fund the whole development under one facility. The package we put in place allowed the developer to keep 55% of the profit with the lender taking a 45% priority return.
Case Study 2
£10 million high-end house development Weybridge - 100% development financeAn experienced developer required 100% property development finance for the purchase and development of a site in St George’s Hill. We were able to achieve this by combining a senior loan with a mezzanine slice with fixed coupon allowing the client to retain 65% of the profit.
Case Study 3
£18 million residential development funding of 90% of total costs (including soft costs and interest roll-up)This experienced developer required 90% funding for the construction of 115 apartments and ground floor retail speculative scheme in this prestigious South Coast location. The project returned 20% profit on cost. We were able to arrange funding through a lender who provided 90% funding in exchange for 12% share of the projected profit (expressed as an exit fee of 2% of GDV).
Case Study 4
Structured development finance- 80% of costs (speculative) Our client, an experienced developer/ contractor required finance to purchase and develop 4 residential units in Surrey. Red Chilli were able to secure funding using a combination of Senior and Mezzanine finance to 80% of total development costs. The project returned 23% profit on cost. Our clients did not have to give away any of the profits of the scheme.
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