Project Location: London N1
Project GDV: around £6.5 million
Mezz Funding Facility: around £1 million
Funding Security: Second charge with an agreed Deed of Priority
Facility Period: 12 months
This is a complicated development where we have provided around £1m of mezz funding to support an established developer client. Our client has skillfully created a mixed development of refurbishment and new build to build six residential units and commercial office space. The project has had to be carefully designed to meet the requirements of a conservation area and neighbouring properties but the result will be an attractive, contemporary, development with inner courtyards.
Calmez has provided mezz funding of initially £650,000, rising to around £1 million over 18 months with a second charge and deed of priority with the senior lender. Mezz funding is the critical funding of the shortfall between the finance available from your bank and the capital required for a property development project – typically up to 20% of the total project costs. This enables the developer to limit their equity to 10% of total costs.
What is Mezz Funding?
By using mezzanine funding, developers can spread their financial investment whilst at the same time doubling the return on available capital and also increase property development capacity. With mezz funding, developers are in a position to move onto their next development(s) while still completing other projects. This can provide developers with a critical advantage at a time when competition for good development projects is extremely high.
CALMEZ offers developer loans and developer funding in the form of mezz funding to property developers and builders with proven track records and whom meet the lending requirements of both our prime lender as well as our own. For more information then please contact us here or by calling 0207 096 1900.