Funding Case Study - Marston Magna, Somerset (2007/8):PROJECT: This comprised of a pair of semis in a prime village area in Yeovil, Somerset. The site was acquired in 2007 by an experienced father/son development team based in Dorset with the senior debt provided by Lloyds TSB- the 1st unit was pre-sold. FUNDING PROVIDED:A mezzanine facility of £125,000 was provided to enable the Developer to complete and sell the second house whilst still building the 1st (pre-sold) unit.FACILITY COST:The facility was provided on standard CALMEZ terms of 1% arrangement fee and a fee of £50,000 based on 35% of the development profit, payable on completion of the sale. Professional cost were borne by the Developer.SUMMARY:The senior debt was provided by Lloyds TSB with Calmez providing the junior debt. This enabled the the developer to develop and sell the second house in tandem with the development of the first unit which had been sold off plan.
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Developer Funding Case Study | Marston Magna
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