A well respected firm of ground workers own a significant land holding on which they have obtained planning permission for a phased residential development.
The site falls into three parts, the first under construction but not financed by ABC, the second a plot for 15 houses and the third a significant site for future development.
ABC has previously provided a bridging loan for the third phase and has now provided finance for the development of the first phase of the 15 plots. To enable ABC to provide 100% of development cost, the two loans have been cross collateralised so generating the developer’s equity in addition to the senior debt.
- Negotiation with the third party lender in connection with their debenture over the borrower
- Funding the equity with additional security
- Retained interest