|Asset Location:||All locations in England, Wales & Scotland considered|
|Asset Class:||Multi-unit residential, PRS, mixed-use, student accommodation, care home, healthcare, commercial and hotel|
|Planning Permission:||Permission required for mezzanine transactions, bridge-to-mezzanine facilities can take into account sites without planning or requiring planning enhancement|
|Facility Amount:||Mezzanine facilities from £3m to £15m per project. Larger facilities for multiple projects|
|Facility Covenants:||Up to the lower of:
(a) 85% of total project costs (including finance); or
(b) 70% of the project's Gross Development Value
|Lending Period:||1 - 3 years|
|Pricing:||Competitive, decided on a case-by-case basis|
|Fees:||Mezzanine market-standard arrangement and exit fees, decided on a case-by-case basis|
For mezzanine facilities: Second legal charge over the property, second ranking debenture and share charge over the borrower
For bridge to mezzanine facilities: first legal charge over the property, first ranking debenture and share charge over the borrower, reverting to mezzanine security once development works start
|Guarantees:||Considered on a case-by-case basis, though we normally seek a personal and corporate guarantee for development cost overruns as a minimum|
Frequently Asked Questions
How much can I borrow?
Between £3m and £15m for a single project, and up to the lower of 85% of project costs (including finance costs) and 70% of the project’s Gross Development Value. This means that we can lend on projects with a Gross Development Value from anywhere between £25m and over £100m.
How much equity is required from the developer?
Typically, we would expect a minimum equity contribution of 15% of the total project costs.
What type of projects do you consider?
Beaufort considers development projects in a variety of asset classes; residential, commercial, student housing, P.R.S., healthcare, infrastructure and light industrial.
Do you consider prime central London / large single unit residential schemes?
Currently we do not have appetite for residential schemes in prime central London or for large single units.
What locations do you consider?
We will look at projects in London, the South East, and major metropolitan areas around the UK. Currently, we do not have appetite for schemes outside the UK.
Does the scheme require planning consent?
Generally we require the scheme to be fully consented, though are able to consider schemes likely to achieve consent (subject to enhanced due diligence).
Do you consider planning gain as part of the equity contribution?
We recognise the effort and cost that goes in to preparing and achieving planning consent for a project and as such are able to consider planning gain as part of the equity contribution.
What security is required?
A typical mezzanine security package will entail;
- Second-ranking legal mortgage over the property.
- Second-ranking debenture and share charge over the borrowing vehicle.
- Personal and corporate guarantee for cost overruns of the developments (on a case-by-case basis).
Do you require personal guarantees?
We would look for a personal and corporate guarantee to cover cost overruns of the project as a minimum in support of the scheme. Guarantees are on a case-by-case basis.
Is bridging finance available?
We are able to provide short-term bridging finance where there is a development possibility at the end of a bridge. For example, a developer has a site on which he is improving the existing planning permission and will develop the site once the enhanced permission is achieved. Beaufort would consider providing a first charge facility for the bridge period, reverting to a second-charge mezzanine facility once the development begins and the senior funding has been arranged.
We typically do not consider bridging finance with no development possibility.
Do you invest equity?
In select cases, equity investments are available. These typically sit alongside mezzanine investments and comprise a minority equity position. Beaufort does not have appetite for 100% / majority equity investments. Contact us to find out more information.
Which senior lenders do you work with?
We maintain strong relationships with a number of high-street and mid-market banks. As such, we are able to quickly agree and document inter-creditor arrangements.
I have a project that I would like Beaufort to consider; how can I get in touch?