Case Study: Studley

Mezzanine / Senior Debt

The developers secured a site for a scheme of six houses in a previously undeveloped garden/amenity land with a belt of orchard on one border. The site comprised 3 two-storey four-bedroom houses, 2 two-storey smaller detached four-bedroom houses with detached garages and a larger two-storey five-bedroom detached house with an attached double garage

Funding requirement – The developer required a senior debt facility to work alongside a mezzanine facility. The client required a debt lender and mezzanine provider who could work together and share professional reports so as to reduce overall costs and provide a seamless package.

Facility provided – Davon was able to source a senior debt loan to provide circa 70% of costs (£875,000) at standard debt terms alongside a mezzanine facility from Strata which provided a further 20% of costs (£250,000) on standard mezzanine terms leaving a balance of 10% of costs to be contributed by the client. The formal valuation and monitoring surveyor reports were co-addressed to the senior debt lender and to Strata, which helped reduce costs and shortened the completion timescale.