Hybrid Development & Investment Loan  

• • Client:

    • UK SPV
    • Consortium of investors
    • Primary contact – experienced property developer / Investor – Target Customer known to GM
  • Purpose:

    To assist with the development of 6 houses in Highgate

  • Loan Amount:

    £4.8m split as follows:
    £1.7m Land Loan
    £2.7m Development Loan
    £0.4m Interest Loan

  • LTGDV:

    55% increasing to 60% LTV once the works have been completed and the property income producing

  • 1st Drawdown:

    Restricted to 60% of present site value

  • Term:

    5 years

  • Rate:

    4.75% Margin reducing to 3% once the works are completed, the property is income producing and the facility is covenant compliant

  • Repayment:

    • Years 1 & 2 – Interest only
    •  Years 3 & 4 – Interest plus capital
    • Debt to amortise to 50% by maturity                            
  • Min DSC:

    1.25x to apply once the works are completed and the property is income producing

  • Exit Fee:

    1.00% prepayment on any outstanding amount repaid early during the loan term

  • Security:

    • First legal charge over the freehold property
    • Assignment over Collateral Warranties from all major counterparties with design responsibility  
    • Personal Guarantee from each of the principals limited to £500k