£37.5 million – 100% development finance for pre-let retail park
By arranging an investment mortgage take-out the development lender has a committed exit

Using CLP’s innovative “Hand in Hand” structure

This provides up to 100% development finance. This is achieved by creating an exit for the development lender by way of a pre-committed investment loan from a separate lender. The lenders work “hand in hand” using the same solicitors and valuer to create a seamless transfer on practical completion of the development.

This project consisted of a well-located development site with planning consent for three retail warehouse units. The unit were pre-let on long leases to strong covenants.

The total project costs including site, construction, rolled-up interest, etc., came to £37.5 million with a completed value of £44.3 million.  In view of the quality of the pre-committed tenants we were able to provide the development lender with a long term mortgage commitment equal to 100% of the costs, hence creating a reliable exit.

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