Mar 9 • General discussion
Funding a £14m - early look for the community
We’re about to send this case study out to our wider network, but I wanted to share it here first.
A developer approached us seeking funding terms for a 5-house residential scheme with a £14m GDV.
The least aggressive terms required £1.23m equity and provided around 55% leverage.
After reviewing the deal and speaking with lenders, we were able to restructure the facility to:
• £9.64m loan
• £225k equity required
• 70% leverage
So the developer will potentially be able to move forward with over £1m less equity into the deal.
I’ve attached the funding comparison so you can see some options from the market side-by-side.
If you're working on a scheme and want a second opinion on the funding structure, feel free to share it in the group or drop me a message.
Always happy to take a look.
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Funding a £14m - early look for the community
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