Maximising client returns
Our client agreed to purchase an office building for £9m with a consent for residential conversion. During the purchase due diligence process, the developer secured consent for an additional floor to accommodate two penthouses within the existing development. Due to the significant value uplift, the client wanted to maximise gearing to reduce equity in the deal as much as possible without having to share any profit or upside.
At Bircroft, we managed to introduce mezzanine finance to sit behind the senior debt to maximise the client’s returns and minimise equity into the deal without having to share any profit.
- Maximising returns whilst minimising equity
- Increased value from investment