Strata Fund has been created to provide second charge funding to selected property development projects.
The Fund is the result of two specialist property firms, Davon Ltd and evolve Fund Services Ltd (www.evolvefs.co.uk), bringing together their respective expertise and understanding of the needs and requirements of developers. The result is a product that can offer a simple form of finance for appropriate projects.
Strata Fund will provide funding to experienced developers with proven track record in residential development. The Fund is seeking to lend to projects that meet the following key criteria:
- Projects located in the south of the United Kingdom;
- Residential developments showing return on cost of c. 20%;
- All market sectors and values of properties considered; and
- Projects to have second charge funding requirement of between £0.5m and £2.5m.
The headline terms for facilities to be provided by Strata include the following:
- Loan facility of between £0.5m and £2.5m per transaction;
- Commitment fee charged of 1% of facility;
- Interest at 30% per annum, rolled up;
- Minimum facility term of 6 months, target term of 12 to 18 months;
- Second charge over subject property;
- Deed of priority with senior debt provider;
- Developer to invest minimum of 5% development costs; and
- Guarantees as appropriate to projects.
Strata Fund will work closely with the senior debt provider on any project and will share the benefit of all professional reports to include formal valuation report and monitoring surveyors' reports.
Strata Fund will provide second charge funding on highly professional basis and will offer an extremely fast response time to all enquiries.
For more information please visit www.thestratafund.co.uk.