Developer Funding Case | Longnor Barn

FUNDING CASE STUDY - LONGNOR BARNS, SHREWSBURY (2008/9):

PROJECT:

This development comprised a set of traditional barns which were converted into four luxury houses in a desirable village 7 miles from Shrewsbury with views overlooking the South Shropshire Hills. The site was acquired in April 2008 and the build completed on time and on budget in February 2009 - monitoring surveyors Naismiths.

FUNDING PROVIDED:

A mezzanine facility of £270,000 was provided at the request of the Developer to support a senior debt facility with Natwest of £845,000 with the developer's equity already in place.

FACILITY COST:

The facility was provided on the standard CALMEZ terms of 1% arrangement fee, 1% brokers fee and a fee of £150,000 based on 35% of the development profit projected by the developer. Professional costs were borne by the Developer.

SUMMARY:

The senior debt was provided by NatWest and the mezzanine funding by Calmez Ltd which substantially reduced the equity required by the developer to complete this project.

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