Mortimer Street Capital (MSC) has completed a £7.5m finance package for a repeat client, securing a £4.1m development finance facility, a £3.2m debt restructure, and a £200,000 VAT bridge.
The funding was arranged with LendNet and two specialist debt funders.
The client needed new terms for a South London scheme of nine homes with a projected gross-development-value (GDV) of £6.7m.
MSC secured 65% loan-to-gross-development-value (LTGDV) funding on a 21-month term, fully covering build costs, alongside a £3.2m debt restructure that provided £700,000 to help with acquisition.
A VAT issue led MSC to arrange a 3-month VAT bridge, later redeemed through an HMRC rebate.
Ratio Law assisted MSC with the land carve-out deal.
Joanna Norris, partner at Ratio Law, oversaw legal negotiations.
Hiten Ganatra (pictured), managing director at Mortimer Street Capital, said: “Since we set up Mortimer Street Capital just over a year ago, this deal is certainly one of the most challenging, in terms of organising multiple parties.
“It demonstrates how we can provide a complex funding solution across a variety of structures, in a seamless and professional manner.
“I am very proud of all parties involved in the transaction, we all worked harmoniously with the end goal of supporting the client.
“Together, we are supporting SME’s build more homes in the UK.”
Simon Green, relationship director at LendNet, said: “When I was introduced to the client by Mortimer Street Capital, I was immediately impressed by the developer’s enthusiasm and dedication to the project.
“As an experienced developer and contractor, they had a clear vision and were able to swiftly mobilise a team of highly skilled subcontractors on-site following the acquisition.
“I am confident that this will be the first of many successful projects for this developer, alongside LendNet Property LLP and Mortimer Street Capital.”
Green added: “I highly recommend any developer seeking an innovative and forward-thinking broker to reach out to the team at Mortimer Street Capital.”
Norris said: “The team at Mortimer Street Capital demonstrated both expertise and strong attention to detail throughout the whole process.
“Working proactively to navigate the complexity of the finance required, address challenges and respond quickly played a key role in bringing the deals to completion for our client.
“It’s been a pleasure collaborating with the team and we look forward to working with them again.”
