Property Development Case Studies
Case Study 1 - Property Development Facility - £1,000,000
Area - Development Facility for 9 houses in the Cotswolds The client owned a Residential Care Home, which had closed down because it was not "fit for the future". Planning permission was obtained for a Residential Housing Development which involved demolishing part of the existing Home and converting the remainder into two units, plus seven new build units in the grounds. The client's Project Manager was formerly the Commercial Director of one of the large building plc's.
- Facility agreed of £1,000,000 covered 100% of development costs.
- Bank base rate plus margin 2.5%.
Case Study 2 - Property Development Facility - £2,000,000
Area - Development facility to build 20 self-contained, 5-bedroom flats for
the student market in Leicester.
The client is converting his existing factory unit into flats and also building a
new block of flats on land he owns adjacent to the factory.
The property is in a prime location, opposite a major University.
The client's existing bankers were only prepared to fund the development on a
phased basis. Our deal enabled the client to build out in one operation, saving
considerably on build costs.
- A 15 year repayment facility was agreed at bank base plus margin 2%
Case Study 3 - Residential Investment Portfolio - £1,500,000
Area - Investment Property Portfolio in North London, mix of houses and flats. With the rise in property values over the last 3 years, our client was eager to utilise the equity in his existing portfolio to go out and purchase more residential property.The client's existing bank did not come up with a particularly attractive package.
- Sterling arranged a Facility of £1,500,000 over 20 years with an initial interest only period of 24 months.
- Bank base rate plus margin 1.5%.
