Development Loan, 13 Apartments
Published by Fusion Finance on 11th November 2019 -
Our client Mr Robinson had been running a successful York-based building company for ten years. Previously he obtained financial support from an equity-based investor who provided funds in return for an agreed profit share. When this funding ended, the client approached us to help find £1.4 million for his next project.
An initial consultation placed the project with two merchant banks. Two weeks later the underwriter meetings were complete, and an updated project summary report plus GDV valuation obtained from Knight Frank.
Both underwriters issued ‘heads of terms’, and our client accepted the offer. The loan included a 50% advance towards the site purchase and 100% of build costs, drawn in agreed stages, against interim inspection reports. Client charges were 2% set up fees, 2% exit fee on the facility and an interest rate of 7% over three month LIBOR.
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