Case Studies
Corporate Debt to Provide Working Capital to Developer/Contractor
Nature of Transaction:
Corporate debt facility to a UK regional single-family residential and affordable housing developer/contractor.
Transaction Size: circa £1.375m.
Term: 1 year, with scope to extend by a further 6 months.
Purpose: To support the sponsor with working capital used to secure new sites to establish its development pipeline going forward.
Location: Southeast and Southwest of England.
Lending Security: A multitude of corporate/personal guarantees and property-specific charges.
Sponsor: UK-based, experienced regional developer/contractor specializing in single-family housing across England.
Transaction SizE:
£1.375m
Term:
12 months
Mezzanine Finance with Solicitors’ Undertakings for Equity Release
Nature of Transaction: Mezzanine funding bridge to exit a Central London residential property where a sale was agreed and legal work had commenced, however, exchange had not occurred.
Transaction Size:
circa £100,000.
Term: 6 months.
Purpose: To facilitate an equity release to enable funding of the borrower’s other high-return investments.
Location: SW1, London.
Lending Security: Solicitors’ undertaking, and a personal guarantee from the borrower. A second legal charge on the property was agreed and signed with the borrower, however, not dated and formally registered to ensure that the senior lending facility does not go into default.
Borrower: UK-based property investor.
Transaction SizE:
£100,000
Term:
6 months
Bridge, Mezzanine & Equity Funding for Planning & Development Plays
Nature of Transaction: Full capital stack funding to a regional developer to enable a site assembly and to fund planning costs for a landmark purpose-built student accommodation (PBSA) scheme. There was a pre-identified institutional buyer for the site who provided a clear exit for the scheme once planning was consented.
Transaction Size: circa £5m.
Term: Medium term.
Purpose: To support the developer with the acquisition of 2 adjoining sites and funding of the planning costs.
Location: S1, Sheffield.
Sponsor: UK-based, regional developer/asset manager with a focus on residential, BTR and PBSA sectors.
Transaction SizE:
£5m
Term:
MEDIUM
Mezzanine Funding via Deep Discounted Bonds (DDBs) for a Development Project
Nature of Transaction: Issuance of deep discounted bonds to finance a landmark purpose-built student accommodation (PBSA) scheme.
Transaction Size: circa £7.5m.
Term: 20 months.
Purpose: To support the sponsor with a funding gap between the senior loan and the equity in the development project. The subscriber to the bonds benefited from both income tax and capital gains tax exemption on the instrument
Location: L1, Liverpool.
Sponsor: UK-based, regional developer/asset manager with a focus on residential, BTR and PBSA sectors.
Transaction SizE:
£7.5m
Term:
2o months
Mezzanine Finance with Equitable Charge for Refinancing of Investment Property
Nature of Transaction: Mezzanine funding top-up to unlock the refinancing of a fully tenanted block of 15 residential units and 1 commercial unit.
Transaction Size: circa £1.25m.
Term: 2 years.
Purpose: Funding stack stabilization to enable asset disposal.
Location: NW10, London.
Lending Security: Equitable charge on property, share charge over property-owning SPV, option agreement to purchase the property at a 10% discount, and a personal guarantee from the borrower.
Borrower: London-based residential developer with over 20 years’ experience in real estate development.
Transaction SizE:
£1.25m
Term:
2 years
Bridge Finance to Distressed Borrower for Restructuring Purposes
Nature of Transaction: Bridge funding to facilitate the refinancing of a non-performing loan on a Central London development project. Capitalising on our relationship with existing lender, we provided a new, clean, UK-based lending structure to refinance the existing loan with a fresh set of finance documentation.
Transaction Size: circa £3m.
Term: 1 year.
Purpose: Funding stack stabilization to enable a more efficient route to development funding.
Location: SW1, London.
Lending Security: First charge on the property, corporate guarantee from parent company, convertible debenture on a third-party company, share charge over property-owning SPV, and a personal guarantee from the borrower.
Borrower: Asia-based investor involved in UK-wide real estate development and investment.
Transaction SizE:
£3M
Term:
1 YEAR
Mezzanine Finance with Second Charge for Cost Overruns on a Development Project
Nature of Transaction: Mezzanine funding to cover development cost overruns on a residential development project in the Midlands, following an impasse between the borrower and the senior lender.
Transaction Size: circa £100,000.
Term: 4 months, with scope to extend by a further 2 months.
Purpose: To assist the borrower with the funding of cost overruns and unlock further senior funding.
Location: LE1, Leicester.
Lending Security: Personal guarantee from the borrower. A second legal charge on the property was agreed and signed with the borrower, however, not dated and formally registered to ensure that the senior lending facility does not go into default.
Borrower: UK-based, national developer with a focus on residential, BTR, co-living and PBSA sectors.
Transaction SizE:
£100,000
Term:
4 MONTHS
Equity JV for Pipeline of Planning Plays
Nature of Transaction: Equity JV with a regional specialist operator to fund planning costs across a number of sites throughout the UK. These sites are pre-sold on a “subject to planning” basis to third-party developers and registered providers.
Transaction Size: circa £2m.
Term: Long term.
Purpose: To support the sponsor with funding of planning costs to repurpose a pipeline of sites from non-viable uses into affordable housing.
Location: UK-wide, predominantly the North and Northwest of England.
Sponsor: UK-based operator with specialism in the pubs and affordable housing sectors.