Structured Finance For Developers
The Mesa Financial team is experienced at helping property developers to find the right funding solutions for property developments, including Development Exit Loans.
In this particular situation, the Covid pandemic had caused our client delays due to issues in the supply chain. The developer faced problems getting material onsite through lockdown and the whole situation ended up costing them time and money.
The main issue for the Mesa Financial specialist to solve was the tied up equity in two large houses in South West London. Our property developer client wanted to be able to commit too there purchases, but was unable to do so until these properties were sold.
How The Development Exit Loan Works
Our solution was to borrow on the existing site. We were even able to get the funds released before practical completion and building regulations were signed off. The development exit loan paid off the existing development finance facility and released extra cash. This is how it looked on paper:
2 Semi Detached Properties in South West London
Valuation – £1,700,000
Development Exit Loan – £1,190,000 (75% of the Valuation)
Exit – Sale
This solution allowed our property developer client to:
– Release an extra £400,000 in cash
– Commit to future property development deals
– Get the wheels in motion for their next property development project
Lending For Property Developers
Do you need advice on how best to fund development projects? Are you looking for land opportunities for future development sites? Our specialists have years of experience and a growing network of landowners and specialist lenders. Get in touch to find out about future opportunities and to discuss your funding requirements. We would love to work with you.