ABC provided senior debt in co-operation with another funder who provided a mezzanine loan. The site, in a prime location in Newquay, had planning permission for nine apartments and included works commenced by the vendor. A loan was provided to finance the purchase, the remaining construction and accrued interest.
Construction is being undertaken by an associated company of the developer under a JCT contract with a period of eight months for practical completion. Repayment will be from sales, which negotiations have continued through the construction period with all units now under offer at prices 10% higher than the developer’s original appraisal.