About the project
Our client Mr Robinson has been running a successful York based building company for 10 years and previously had the support of an equity based investor who provided all necessary funds in return for an agreed profit share arrangement . Due to the economic downturn this funding was not available and we were approached to assist in finding support to £1.4 million for the clients next project.
Following an initial consultation and fact find with the client we positioned the project with two Merchant Banks whom we knew would be interested in the proposition and the unique location of the development site in this historic City.
Within 2 weeks underwriter meetings were complete and an updated project summary report and GDV valuation obtained from Knight Frank.
Both underwriters subsequently issued heads of terms and our client accepted the offer that we both felt reflected best overall value and flexibility to complete the scheme.The loan would offer a 50% advance towards the site purchase and 100% of build costs drawn in agreed stages against interim inspection reports – charges to the client were 2% set up fees, 2% on exit of the facility and an interest rate of 7% over 3 month LIBOR.