Development Finance

From all types of commercial, industrial or residential property-conversions or refurbishments, to the ground-up build of Single Units, or Multi-Unit Blocks, or Student Accommodation, Care Homes or Hotels, or almost anything else, Black Book’s expert Development Finance team have you covered.

Whatever the type, size. leverage or scale of the project, our team can advise on and arrange highly-competitive development financing solutions including; Senior Debt, Stretch Debt, Mezzanine Finance, plus a large network of active Equity Investors.  Our team maintains long-established relationships at the highest level within a vast range of funding sources.

Once you, or your client, become a Black Book client, our team and our office become an extension of yours, acting as your professional liaison at all times across all parties.

Overview

Every enquiry is unique of course, but as high-level guide, the following are the general parameters we consider for Senior Debt:

50% to 65% LTGDV –  typically 5.5% – 7.25% pa, with 1% IN & 1% OUT.

Up-to 70% LTGDV –  typically c.8 – c.10% pa, with a 1% IN & 1% OUT.

Note:  LTGDVs are usually restricted by the ‘Loan to Cost’, to not exceed 90% of the total project costs (unless further security can be offered).

If the land or site is already owned, this can be treated as your ‘equity’, so that 100% of the development costs can potentially be funded.

Lenders are usually able to provide an interest-roll-up facility within the Gross Loan, for a term of up to 36 months.

In terms of recourse, most (but not all) lenders require a minimum cost overrun allowance and interest shortfall guarantee.

For full access to Black Book’s Development Finance advisory service, either:

Call us on 0800 651 6511 or enquire online