How to develop with only a 10% cash stake!

BCF Call us now on 01202 656100 Develop with only a 10% cash stake!

Projects funded to 90% of costs

Great news for property developers - mezzanine to 90% of costs BCF are delighted to have launched their flagship development package.  This facilitates funding for 90%, yes NINETY PERCENT,  of the costs of a residential development project.  If you qualify this means that you can develop with only a 10% cash stake!  As a result you can develop more sites simultaneously and make more profit. The scheme marries senior debt with a fantastic mezzanine package which is flexible with the top slice being a minimum of £100,000 which means that a higher proportion of senior debt is practicable. This in turn reduces the overall interest costs. The scheme is open to experienced property developers building houses or flatted schemes in Southern England and the Home Counties. To discuss a potential deal or for a general chat, call 01202 656100 For Example Below are six current development projects which give a good general overview of our mezzanine lending.  We fund up to 90% of costs but we do require the developer to put in a minimum of 10% of the costs.  On this basis we can provide up to a maximum of 70% of completed end value.  The 70% being the combined totals of the bank facility and mezzanine loan.  6 Flats Projected end value        £1,239,000 Development cost           £1,017,300 Senior debt                         £713,000 Developer’s equity              £125,000 Mezzanine                          £159,000 Gross profit                         £221,700 Less mezzanine                    £54,500 Net to developer                  £158,200 Net % to developer                  71% % return on equity                  126% 4 Townhouses Projected end value          £1,680,000 Development cost             £1,388,500 Senior debt                           £920,000 Developer’s equity                £150,000 Mezzanine                            £243,000 Gross profit                           £292,000 Less mezzanine                      £81,000 Net to developer                   £211,000 Net % to developer                   72% % return on equity                   140% 5 Flats over Retail Projected end value            £2,365,000 Development cost               £1,715,500 Senior debt                         £1,022,500 Developer’s equity                 £170,000 Mezzanine                             £483,000 Gross profit                            £649,000 Less mezzanine                     £141,000 Net to developer                    £508,500 Net % to developer                    78% % return on equity                   298%   4 Houses Projected end value             £2,280,000 Development cost                £1,798,500 Senior debt                          £1,081,000 Developer’s equity                  £269,500 Mezzanine                              £407,000 Gross profit                             £481,500 Less mezzanine                      £127,000 Net to developer                      £354,500 Net % to developer                     74% % return on equity                     131% 11 Flats Projected end value                £3,232,500 Development cost                   £2,642,000 Senior debt                             £1,760,000 Developer’s equity                     £270,000 Mezzanine                                 £504,000 Gross profit                                £591,000 Less mezzanine                         £189,000 Net to developer                         £402,000 Net % to developer                        68% % return on equity                       148% 10 Flats over Offices Projected end value                 £4,135,000 Development cost                    £3,332,000 Senior debt                              £1,958,200 Developer’s equity                      £666,500 Mezzanine                                  £565,000 Gross profit                                 £803,000 Less mezzanine                          £165,000 Net to developer                         £638,000 Net % to developer                         79% % return on equity                          95% CALL NOW ON 01202 656100 Or visit www.bcfdevelopmentfinance.co.uk