Loan type: 100% of all costs including acquisition.
Loan amount: £1,500,000
Lender type: Private Debt Fund.
We were initially approached by a client with a prime development opportunity in Glasgow. The client had a lack of ability to commit funds to the transaction, due to vast ongoing development portfolio he was currently operating. Given their experience and quality of product produced we believed we could deliver a package that removed the need for equity from the development.
Utilising our relationship with a Scottish focused private debt fund, we were quickly pull together a proposal for the development, with a loan requirement of £1,500,000, covering all costs of the development. With a £600,000 profit at stake, we managed to secure the best profit share possible.
A formal offer from the private debt fund was delivered within two weeks, allowing the client to submit a credit backed offer for the site which was subsequently accepted. The accepted offer included, a 65% profit share in the developer’s favour, along with any uplift beyond the agreed sales figures.
After only five working days on site, the developer has negotiated a sale at £45,000 above the additional appraisal agreed with the funder and developer. The developer retained the full £45,000 as this was ahead of budget.
Conduit Finance’s Sean Crombie commented;
“Zero available equity is a common problem faced by experienced and active developers. The solution delivered not only allows our client to act on this scheme but gives them confidence regarding future opportunities.”
Our client commented;
“Sean at Conduit Finance placed our requirement successfully after listening carefully to our needs. They are very meticulous and very niche which was what we were looking for. We found Conduit easy to deal with which is a breath of fresh air. This is the beginning of a long relationship for us.”
If you are an experienced developer being presented with viable scheme’s then please do not hesitate to get in touch for a quick decision on whether full funding would be deliverable.
Sean Crombie | 07595 520 577 | Sean@ConduitFinance.com