Davon has provided mezzanine funding for an £8.5 million mansion overlooking the beach and championship golf course at Saunton Sands in Devon.
The 12,500 sq ft project by Essex-based husband-and-wife developers Ashley and Tracy James will create a nine-bedroom home with swimming pool, sauna and gym. It is due for completion at the end of 2023.
Following a referral from lead lender MSP Capital, an initial cash injection of £475,000 from Davon helped the couple to keep the project moving forward and manage rising material costs on the steel-frame building.
Ashley James recalls: “When MSP recommended the mezzanine route, I was initially reluctant because of the interest costs, but I had an hour on the phone with David Norman of Davon and immediately told Tracy I could really work with this guy.”
"Due diligence with Davon was straightforward, and they were straight down the line with us through the whole process."
The couple’s experience with Davon bore out that initial good feeling, as Ashley explains: “David is extremely personable and enthusiastic. Due diligence with Davon was straightforward, and they were straight down the line with us through the whole process.”
He adds: “If I was going to use mezzanine again, I wouldn’t look anywhere else. I cannot fault them.”
Davon has now released a further tranche to enhance the specification for the interior of the property, including glazed doors connecting the pool facilities and upgraded kitchen and bathroom furniture.
The association with Davon has also had other benefits, as David has been able to connect Ashley and Tracy with useful new contacts.
Surrounded by rolling Devon countryside with spectacular views, the build is already attracting plenty of interest from potential purchasers.
Davon has worked with MSP Capital on several occasions to provide a second tier of funding behind the first-tier loan to residential developers for a variety of reasons.
Mezzanine finance frees up cash for developers to cover start-up costs such as planning, allows them to diversify investment into other projects and also provides a way to overcome unforeseen circumstances.