Senior Debt

Where a borrower has an adequate amount of capital for a given deal the simplest funding solution in most instances is to combine the developer’s equity with a senior debt facility.

Davon can arrange senior debt with a select group of lenders who typically provide between 50-60% LTV (loan to value) which in most instances equates to between 65 -75% of total costs (including site acquisition, professional fees and interest).

In some situations, a senior debt lender is able to extend those parameters to achieve higher LTV levels in the region of 65-70% which is often referred to as ‘stretched debt’.

 

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