One loan took advantage of the lender’s ‘stepping stone’ scheme, which allows the transfer of equity from one project to another.
This can help new projects start earlier and enables developers to do more schemes in a year by using the same capital more efficiently.
This £1.6m loan, at 55% LTV, will allow a shop, storage area and one flat to be converted into five new flats and a shop, in south London.
The other deal was a permitted development multi-drawdown loan of £900,000, with an 18-month term.
It will be used for the refurbishment of a 19th century derelict period property on the South Coast, that was purchased at auction, and will be converted into four separate two- and three-bedroom residences.
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The sale of the individual homes will provide the exit for the loan.
Marc Morris, case manager at Fiduciam, said: “As Covid-19 slows the sale of completed projects, it will also generate attractive opportunities to purchase new sites.
“The possibility of transferring equity from one project to the next will become ever more attractive, and Fiduciam expects to see more applications for its ‘stepping stone’ loans over the coming months.”
Ryan Parrett, business development manager at Fiduciam, added “…The £1.6m ‘stepping stone’ loan this month was for a client who came to us a few years ago for an initial £200,000 loan.
“One of the joys of working with entrepreneurs and developers over a number of years is that we see, and are instrumental in, how their businesses grow.”
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