This package includes a new £4.1m development finance facility, a £3.2m debt restructure and a £200,000 VAT bridge.

MSC arranged this facility with funding partners LendNet and two other specialist debt funders.

The unnamed developer client approached MSC in late 2024 to secure new terms for an acquisition in South London, concerning nine homes with an anticipated GDV of £6.7m.

MSC secured funding terms at 65% LTGDV on a 21-month term with build costs fully funded via LendNet.

These terms included a high LTV land loan alongside a £3.2m debt restructure package on a separate site that provided capital of £700,000 towards the acquisition.

With the site subject to VAT, the three-month VAT bridge was implemented to support the client with short-term cashflow. This bridge would later be redeemed via a rebate from HMRC.

“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,” said Hiten Ganatra, managing director at MSC (pictured above).

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“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 SMEs to build more homes in the UK.”

Simon Green, relationship director of private credit at LendNet, added: “When I was introduced to the client by MSC, 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 MSC.

"I highly recommend any developer seeking an innovative and forward-thinking broker to reach out to the team at MSC.”

Ratio Law worked with MSC, successfully facilitating negotiations and completion of the land carve-out transaction involving a “major corporate” vendor.