Investment

Requirement / Background

Client finished development and let out dozens of flats in one freehold block. Obtained further planning to build another two floors. Ability to develop top floor of flats whilst building occupied. Had a separate company that held a mixed use portfolio.

Facility type

Flexible Investment Loan with Drawdown facility to allow for development

Incumbent facility size

£5.7m (Split lenders – £3.5m & £2.2m)

Empire Capital Solution

-One Lender Solution
-60% LTV across the board providing Day 1 facility of £8m
-Ability to draw a further £2m post completion
-No Personal or Directors Guarantees
-Interest Only with 1% capital reduction per annum

Interest Rate

3.25% across both proposals

Other Charges

1.50% Arrangement fee

Outcome & Conclusion

Finding a lender to allow construction on a fully occupied building is a challenge. However ECS strong relationship with a Zurich based bank allowed this to happen.