Case Study
Property Development

Clients forming a new property development company approached us to arrange finance. The clients had been successful with two bids for plots and wanted if possible to develop both simultaneously. Their own bankers were willing to fund one of the developments but required clients to contribute a larger cash input than the clients were able to arrange. The clients did not want to provide any additional security for the developments.

After detailed discussions with the client we were able to fund both developments:

Development 1 was financed with another bank at 75% of land purchase cost and 75% of the anticipated development costs. The interest rate achieved at 2% over base and the lending fee at 1% were both significantly lower than that offered by their own bankers.

Development 2 was placed with a specialist property lender who provided 100% of the purchase and development costs. This option was chosen after careful consideration of an offer of joint venture finance from an investor introduced to the clients by ourselves. The client decided on the finance route as they would retain full control of the sale proceeds rather than an agreement with the investor for a profit share.

Our client has recently approached us to arrange the finance on their next developments.

The products and services promoted here are not part of the Openwork offering and are offered in our own right. Openwork Limited accept no responsibility for this aspect of our business. These products are not regulated by the Financial Services Authority.

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