The Challenge
An experienced developer approached us seeking funding for a new venture. The project involved purchasing a development site with existing planning permissions and financing the construction of an eight-unit residential scheme over an 18-month period in Dublin.
The Dublin property market’s competitiveness presented significant challenges. The development site was being bid up, requiring the client to invest more capital into the purchase than initially anticipated. This scenario necessitated finding a lender who could offer terms with the highest possible loan-to-cost (LTC) leverage to make the project viable.
Our Solution
After assessing various lending options, we identified a lender who recognised the project’s potential and was willing to extend beyond their usual lending limits. This decision was influenced by the developer’s proven track record and the prime location of the site, which ensured a quick sale of the units upon completion, likely at prices above the asking.
The Outcome
We secured a 24-month acquisition and development facility that provided 70% loan-to-gross development value (LTGDV) and an exceptional 90% LTC, amounting to £7,100,000 at a fixed interest rate of 10.92%. This financing structure allowed our client to proceed confidently with the acquisition and subsequent development, ensuring the project’s financial viability and success.
This case highlights our ability to leverage deep market knowledge and lending relationships to secure optimal financing solutions that align with our clients’ development goals and market dynamics, ensuring successful project outcomes.
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