ABC Ltd is seeking to borrower £1,000,000 for the purpose of developing 4 residential apartments in Walthamstow, East London.
It is projected that the total loan will be required for 12 months and the remaining period is shown above. Please remember these are target loan periods only and not guaranteed.
The total gross development value of the completed properties is £1,750,000 as assessed by JLL Property Services on 28 March 2019. Based on this, the total loan to value is 65% and the loan is secured by way of a first charge against the site/properties and with the benefit of a personal guarantee from the directors of the borrower.
You will be lending money to ST ABC Ltd which will lending the money to ABC Ltd and who will take the aforementioned security. Please read the Co-Funding Information Brochure for more information on the investment structure.
The developer intends to target the properties for sale to first-time buyers and professional buyers looking for their next home.
The primary strategy is to achieve sales of the properties on the open market which will allow the loan to be repaid. Including interest and fees, the properties would need to sell for at least 90% of their current valuation received by JLL Property Services in order to fully repay the loan and the interest due over the initial target term of the loan.
If the properties do not sell, the developer may look to re-finance the loan in order to provide repayment of our loan in full or in part (with any remainder being due following sales when they occur).