We love a time challenge

Deal type - Acquisition of listed building

Client - Residential property developer

Location - Glasgow, Scotland

USP - Fast delivery of 100% the purchase price

Loan sum - £2,300,000

Product - Commercial property bridge loan

When a developer was let down by a bank, and needed a deliverable solution fast, their solicitor knew who to trust, Mark and Andy at Conduit Finance.

The client, a well-established and profitable UK-wide developer, had terms agreed and in place with their existing funder.  Just days before completion, and post the Brexit result, last June, their funder decided to pull out of the Scottish market in late July.

Mark Reidy received the call from the solicitor to assist with the urgent funding requirement. He was tasked with sourcing acquisition finance within 6 weeks to ensure the developer secured a site with a development net profit of £2,000,000.

Mark then worked with his colleague Andy Lawson to undertake quick due diligence and to scope the client’s requirements. Using our lenders database of over 400 active sources and our market knowledge we quickly placed the requirement with a reliable lender who could deliver.

Next day they met with the solicitor to further scope the requirement, security and the client’s expectations. At the meeting Mark and Andy presented a number of potential solutions with a plan A and plan B being agreed.

Mark presented the solutions to the borrowers and our letter of engagement was signed same day.

After the collection of data and supporting documents we drafted a proposal for the lenders and after submission we secured heads of terms within 24 hours.

We search the market every day for interesting new to market lenders and creative products. This investment in innovation ensures when we get the opportunity we can react decisively.

From start to finish the process took 6 weeks and we have been instructed to raise another £4,200,000.

And good news from our perspective, we have been retained by the borrower. We look forward to delivering for both the client and the introducer again in the future.

Our client said

 "The certainty Mark provided regarding the deliverability of our funding gave us peace of mind throughout the whole process"

The introducer said;

“We are delighted with the service Andy provided to our client to enable the fast completion of this transaction.”

If you have a similar time pressured requirement please call Mark Reidy or Andy Lawson, either inside or outside business hours, for comfort and a solution.

Mark Reidy           Mark@ConduitFinance.com             07775 678 087

Andy Lawson        Andy@ConduitFinance.com              07929 612 502

24hr Fund Raise for Unique Site, in Hugely Competitive Locale

Photo by caviarliu/iStock / Getty Images

Picture the scene, an existing client retained our services to provide a fast (sub 24 hours) bridging facility to enable the acquisition of an existing property and adjoining plot of land in the ‘city of dreaming spires’.  The opportunity being a short 15 minute walk from Oxford University.

We dropped everything to achieve Lender Heads of Terms in under 24 hours from the initial enquiry.  

It was a delight to be able to provide robust evidence of funds to enable our client to negotiate the final price (£900,000) and timeline with the vendor, secure the land, and allow legals to commence.  

The borrower, a very reliable and well established developer, did not want to miss out on such an opportunity given the location.  They were able to ring-fence cash for the deposit, and the percentage gearing gave a good selection of what the market had to offer.  The pressure was one of time and any failings on our part meant the loss of the opportunity, the forecast £1m profit which goes with it, and I expect, the client’s future business.  

We knew the lender who would support the bridging facility almost immediately, so we began a program of works with a tireless effort that saw us build the submission and supporting documentation into the evening, allowing us to present Lender Heads of Terms to our client the following morning.

The facility agreed was net £683,000 which would be required for a minimum period of 3 months with interest chargeable at 0.95% per month.

After delivery of the Lender Heads of Terms and the client securing the property/land, we were able to widen our search and research to bring down the interest cost and fees associated with the facility.   This was achieved by putting in place a development finance facility ‘day one’, so that the client did not have to use a bridging loan and therefore the additional set up fees and higher interest associated with this originally sourced ‘interim’ product.

If you or your clients require quick action from a committed, reliable and well connected team then we may be what you are looking for.  We are client side, and act at pace to put in place the funding you need, when you need it.  

Get in touch and run your scenario past us today.

Mark Reidy
Business Development Director
Mark@ConduitFinance.com
T 0131 564 0275
M 07775 678 087

Meet the Team - Sean Crombie

Sean joined Conduit Finance in September 2015 as a Business Development Manager, working closely with our Business Development Director, Mark Reidy, and our Managing Director Jamie Davidson.

He started his career as a professional rugby player aged 19, and studied Business & Economics at the same time.  During his rugby career he played for Aberdeen Grammar, Border Reivers, Edinburgh Rugby and Newcastle Falcons.

He currently plays for Boroughmuir RFC in Edinburgh. 

Sean has worked on building and strengthening our external relationships with both clients and lenders. On a day to day basis he works with developers and landlords across the UK, helping them efficiently acquire and develop residential and commercial properties. 

The completion of a £1.1m property bridge in London in 7 days stands out as a recent success. It was the speed of the completion that was impressive, considering the lender was new to market.  They also didn't require a valuation which helped save time. 

Other recent successes include the debt forgiveness restructuring of an office investment away from Cerberus, and the funding of a residential development project at a 2.5% margin. 

Sean works closely with our research team to quickly release the specifics of any new to market lenders.  He is currently helping borrowers secure competitive stretched senior development funding at high LTC's, and flexible bridging finance from 0.60% pm. 

He is also working with a number of clients who have had their loans sold on to Cerberus, CarVal, Kennedy Wilson and Lone Star. These loans can be quickly and efficiently refinanced away from the loan managers, who are invariably Pepper/Engage Commercial. 

Restructuring is a specialist service Sean and the wider team can provide.

If you require live pricing or want to hear who the new to market lenders are, then please call Sean on 0131 564 0172, or email Sean@ConduitFinance.com