Case Study: Wandsworth

Mezzanine

The development consisted of the demolition of the existing commercial buildings and their replacement with a four story mixed use building. The development consists of a food retail unit on the ground floor and five two-bedroom flats and four three-bedroom flats above.

Funding Requirement – The developer required a mezzanine facility to compliment senior debt from their main debt lender.

Facility Provided – A mezzanine facility of £845,000 was provided, which in conjunction with the senior debt lender provided circa 90% of total development cost including site purchase, construction costs, senior debt interest and fees.

The facility was provided on standard Strata terms with the formal valuation and monitoring surveyors reports co-addressed to the senior debt lender and Strata. The funding solution allowed a meaningful reduction in the level of equity required from the developer in comparison to the requirement based on solely debt funding the scheme.