Case Study: Clevedon

Mezzanine

Refurbishment of two Victorian villas and the construction of a new build block connecting them. The new development will create fourteen apartments with spectacular views over the Bristol Channel.

Funding Requirement – The developer required a mezzanine facility to compliment senior debt already agreed with a senior debt lender.

Facility Provided – A mezzanine facility of £530,000 was provided to allow the developer to substantially reduce the equity required for the scheme and enhance their return on capital invested. This funding structure also provided liquidity for further acquisitions and ongoing schemes.
The facility was provided on standard Strata terms of 1% arrangement fee, interest at 30% per annum rolled up (but not compounded) and no exit/redemption fee.

Professional reports were shared with the senior debt lender in the usual way.  The facility provided substantially reduced the sum of equity that would have been required by developer in order to develop the site using only the standard senior debt.