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Versatile financing solutions
for the middle market

With pricing now reflecting risk in the funding market, there are a select number of lenders willing to provide higher leverage on a whole-loan basis. Typical leverage is 70-85% LTV with pricing dependant on the property fundamentals. Leverage above 85% is attainable but likely to be considered as preferred equity and demanding higher pricing or profit share agreements.

For complete peace of mind, Bircroft can assist clients in cash-flowing the project to ensure the pricing maximises Return on Equity as well as run sensitivity analysis to safeguard the re-financing risk at loan maturity.

CRITERIA CONSIDERATIONS

  • UK & Pan-European locations only
  • Income producing asset(s) alongside experienced asset managers
  • A requirement for higher leverage
  • An asset management angle is preferred

FUNDING STRUCTURE

£5-75m

Total Commitment

Investment &
Development

Type

1-5 yrs

Term

4-8%

Pricing

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Scotland – Value £12m

Re-financing existing debt

Our client (an experienced asset manager) was faced with a difficult situation with their existing funder where falling values (post credit-crunch) alongside the miss-selling of hedging products, had led to a fractured relationship between borrower and lender. The leverage requirement was high for a market with negative sentiment at the time of funding.