sqft.capital

Senior debt to super-stretched senior debt.

It is possible to access up to 75% LTV through non-standard lenders though cheaper debt is available with rates and lender’s appetites constantly changing. Gain live access to not just the best rates but the most suitable lenders.

4.25% - 12.00% p.a.

Mezzanine debt.

Rarely understood but very powerful to reduce the equity requirement needed to be put in and typically leaving more profit to the developer than having an equity partner.

14% - 25% p.a.

100% development finance.

Typically with family offices who are happy to lend, given first charge security.

8% - 12% p.a. + profit share

Exit facilities

To reduce the cost of debt, once practical completion is complete. Exit facilities will lend to a higher LTV at a lower costs as they act more like a mortgage with no development risk (as build is complete).

6% - 9% p.a.

Bridge facilities.

Typically used to lend against the current value of land / buildings, whilst further planning consent is obtained.

6% - 9% p.a.

Equity on coupon.

Having an equity partner (shareholder) who takes a monthly interest rate (coupon) on their money. This can be rolled (paid back at the end) or serviced (paid monthly).

20% - 30% p.a.

Preferred equity.

Having an equity partner (shareholder) who takes a pre-agreed profit share, before the developer receives theirs. This can be a fixed amount or a fixed percentage, and is typically lower than the developer's share as it is taken before the developer (at lower risk).

30% - 40% p.a.

Side-by-side equity.

Having an equity partner (shareholder) who split’s profits with you at a pre-agreed rate, potentially after taking an interest rate on their invested capital (a hurdle rate).

Profit share

Short term equity.

Equity for various requirements (usually short term liquidity), usually lent with a charge on a property as security.