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Airspace Development

Airspace Development in London

  • Loan: £990,000
  • Term: 12 months
  • Charge: 1st & off-site modular security
  • GDV: £1,850,000
  • Site: Rooftop Development on Freehold
  • Exit: Sale of Units

We have successfully completed a Modular Airspace Development facility for one of our clients in south London. This deal was not the average development finance structure, with some notable hurdles to overcome to ensure the structure of the loan would work for the client throughout the duration of the build programme.

One of the complications for this deal was the modular build element, where 75% of the construction of the units is off site with these part complete units then having to be craned into position on top of the existing building.

As with most off site construction methods, whether it be timber frame or modular, there are generally hefty upfront drawdown requirements which can create pinch points from a cash flow perspective.

With this particular deal we have managed to negotiate with the lender to effectively lend against both the on site AND off site security, something which the lender had not done before. Having this level of flexibility when putting a structure together practically guarantees the drawdown requirements will be met and the rapid build programme will not be held back. The project has a quick turnaround and is starting in October and the completed development should be ready for sale in Jan / Feb 2021.

Solution

  • 2% Arrangement Fee
  • 0.9% pm
  • Lending against on site & off-site security
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