Property Development

Property Development

Our client was a property developer in Midlands. They had found a site that could uniquely fill the needs of a local council that was looking to move some of their public services under one roof. The site though needed to be developed in accordance with those needs and it would take 18 months to do that.
The client approached a UK bank for the provision of finance. We negotiated the finance agreement on behalf of the client. The agreement had a high initial interest rate that would drop significantly (to 1/3) after 18 months, provided the council moved into the outfitted building. Complex provisions surrounding the mechanics of that interest rate transition were included since the bank was assigning the loan to a family office for the 18-month period, or until the building was delivered. The document and the security arrangements were complex; however, the client went in with 10% equity to project cost and came out with x6
Property Development