What was needed?
Our client was looking to purchase an office building in Reading in order to redevelop it and convert it into 69 flats, as well as a further 45 flats in the roof space over two floors.
The client had money towards the project but needed further capital in order to cover the cost of development over a longer period whilst the works were completed.
What did we do?
We sat down and reviewed our client’s plans and their experience as well as their business plan, seeing how long the project would take and what they required.
After going through the options we recommended a development loan which could be used to fund the development of the site over a longer period
The total Gross Development Value, or GDV, of the site was estimated at £14.4 million, and the client needed to borrow 60% of the total GDV.
An interest rate of 4.25% was agreed for the total value of the loan, payable on repayment of the initial amount.
The client estimated that they’d need 24 months to complete the development
The client repaid the initial amount by re-arranging longer-term exit finance through ourselves, paying back the development loan with a longer term arrangement.