In addition to our own developments we invest capital in partnership with developers and contractors. We are flexible as to investment structure, but typically investment takes one of three forms:
Cash Equity - we will provide up to 100% of the equity required to acquire a site, or up to 90% if in partnership. Partners can provide the balance either with cash (or land if a site is already owned by the partner), or by granting security over other assets. We can source third party debt either to complete an acquisition, or to refinance equity post-acquisition.
Mezzanine - flexible, bespoke funding that reduces the level of equity required by a property owner, sitting between equity and senior debt. It can be made available for very short periods if required, i.e. in order to effect an acquisition or to take an asset through specific parts of the value-add process.
Bridge - short term funding that is useful where traditional debt finance is not available, either because time is of the essence, or because an asset is not at a stage in it's development where it would be acceptable security for a traditional lender.
EXAMPLE OF A MEZZANINE FACILITY SUPPLIED BY US
Conversion of an existing office building to create 51 residential units under PD provisions. Forward sale of affordable element. Open market sale of remaining units during and post-completion of construction works. Pictured above.
Our role in this development is the supply of a Mezzanine loan facility to an established, experienced residential developer, the loan sitting between the developer’s equity and senior debt from a well-known development lender.
Mezzanine Loan Facility
EXAMPLE OF A BRIDGE FACILITY SUPPLIED BY US
Refurbishment of three flats on the 1st, 2nd and 3rd floors of a period building in Fitzrovia, Central London. Renovation and re-letting of commercial unit on ground and lower ground floors.
Our role in this development was to supply the bridging loan facility to aid with the purchase of the property. The loan was repaid in full and interest within 9 months.
Bridge Loan Facility