Rival brokerages partner to complete near-impossible finance deal
Pure Structured Finance teamed up with one of their rival brokerages who had been approached by a client that needed specialist sourcing for a property development with great complications.
A huge pool of lenders couldn’t loan the £1.5m that was needed to the client, as it needed to be completed within two weeks.
Due to Pure Structured Finance’s strong relationship with a European fund, they were able to help the client, and brokerage, source the money needed and in the timeframe given.
The client had not sold enough of the units from a previously completed development, and needed the remaining £1.5m to meet their assumed equity contribution for their new deal, based in Manchester.
The lender, who wishes to remain anonymous, structured the finance as if it were a true equity play by taking shares in the company buying the scheme, although technically it was a mezzanine loan.
However, the lender waived their voting rights, allowing the client full control of their scheme. Pricing has also been kept at a sensible level (16%PA with minimal fees) to ensure the profit level remains fair for the client.
Tom Lee, Director of Pure Structured Finance, says:
“When we were approached by this brokerage, we were surprised, but also delighted as we knew exactly the lender to go to to complete this deal. It’s always a satisfaction being able to help property developers get the finance they need, but even more so when there are restrictions with other brokerages, and goes to show how important relationships are between brokerages, lenders and clients – it’s a very symbiotic relationship for everyone!”
The client is extremely happy and is now exploring other potential schemes to work on with the fund.
Pure Structured Finance and the other brokerage are looking at more deals to work on together as the collaboration was a huge success and allowed both sides to play to their strengths.
Kindly shared by Pure Structured Finance
Main photo courtesy of Pixabay
