Red Chilli structures 100% speculative residential development finance

Red Chilli Structured Finance announced today that they have successfully funded a 100% speculative residential development scheme in Greater London. Utilising a combination of Senior and Mezzanine lenders Red Chilli structured a deal to achieve an overall package suitable for their client. “In an extremely tough market, where very few development deals are able to proceed even with pre-sales, we were able to secure a funding package of over 80% of total project costs. The deal was for a solid developer with a great track record, who intimately knew the local market. The site was not in distress and was bought at market value” said Tim Mycock, Senior Broker at Red Chilli.

“Using Red Chilli’s extensive market knowledge, we were not only able to find suitable senior and mezzanine lenders, but also lenders who were willing and able to work together, which is a big challenge when structuring deals. The relationship between both lenders is cemented and can be rolled out for future projects.”

Red Chilli Structured Finance is able to arrange finance for speculative residential development throughout the UK, to developers and house builders alike with good track records and strong balance sheets. Red Chilli is able to look at new acquisitions as well as distressed development solutions, for projects ranging between £5 million and £20 million.

Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe

Call us on 0845 210 5000 to discuss your funding requirements
www.redchilli.com

Related

• The Re-emergence of Mezzanine Finance in the Property Industry
• Residential Development Funding QT4 2009 Outlook
• High-end residential development funding
• Commercial Property Finance for Investment and Development Projects Snapshot
• UK Commercial Property Finance - a year on from Lehman’s collapse