Case Study: Raynes Park

Mezzanine

A development of seven four-bedroom new-build houses in Raynes Park.

Funding Requirement – The developer had secured a number of opportunities and was keen to maximise their development pipeline by spreading available equity among a number of schemes.

Facility Provided – A mezzanine facility was provided to reduce the developer’s equity in the scheme from 30% of total development costs down to 10% of total development costs.

The facility was provided on standard Strata terms which alongside the senior debt lender allowed 90% of cost including site acquisition, build and fees to be funded. To minimise cost to the developer all professional reports were shared with senior debt lender in the usual way.

The facility provided allowed the developer maintain their level of activity across a number of sites in different geographical locations and also to maintain the required level of equity to pursue other opportunities.