Case Study: ChelseaBridging
Refurbishment of a duplex flat of £1,075 sq. ft, ground and lower ground floor, in a converted period building in a prime Chelsea address in Central London. The proposed refurbishment involved a comprehensive programme of modernisation to create a contemporary apartment which was sympathetic to the age and architecture of the building.
Funding Requirement – The developer owned the property outright and required funding to undertake the refurbishment works on the property and to improve the common parts. Due to the low level of funding required against value a competitive funding solution was required.
Facility Provided – Davon was able to structure funding with a specialist senior debt funder on the basis of a 360 day term facility. The senior debt facility was charged at .99% per 30 days to increase or decrease in line with 3 month LIBOR. There were no arrangement or exit fees.
The facility structured provided an ideal solution for the developer, resulting in a flexible funding structure with a fairly certain cost of funds but with the benefit of no exit fess meaning that the developer could benefit from all of the upside potential.