Equity & Mezzanine Finance
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Eligibility Criteria
In order for projects to be eligible, they must meet the following criteria:
- Senior / 1st charge loan must be secured through Brickflow & lenders must have completed Brickflow's DIP sheet
- Senior lender to be a deposit-taking bank, or 75% of the loan needs to be funded via a funding line from a deposit-taking bank (we will highlight the eligible lenders)
- Developer must have previously completed 2+ similar projects
- GDV: £50,000 or greater
- Total gross loan size: £50,000 - £500,000,000
- Borrower equity must be a minimum of 3% of Total Project Costs
- Total project costs (TPC) = total land costs, build costs, professional and finance costs (including lender interest, arrangement and exit fees)
- Will only consider Glasgow and Edinburgh in Scotland
- Profit on cost should be 20% of GDV (or greater)
- Step 1: Profit = GDV - TPC* (Total Project Costs)
- Step 2: Profit / TPC = Profit on Cost
- *TPC = gross loan minus net loan gives you interest costs, then add arrangement & exit fee (+ lender professional costs, which you are unlikely to know at DIP stage)