Mortimer Street Capital (MSC) has arranged a new £4.1m development finance package, a £3.2m debt restructure, and a £200k VAT bridge, for a repeat client.

It used funding partner LendNet and two other specialist debt funders for the facility.

The client approached MSC in late 2024 to secure new terms for a purchase that the developer had negotiated in South London for a scheme of nine homes with an anticipated GDV of £6.7m.

MSC managed to obtain development funding terms at 65% LTGDV on a 21-month term, with build costs fully funded via LendNet. These terms included a high LTV land loan and alongside a £3.2m debt restructure package on a separate site that provided a capital of £700k towards the acquisition, the scheme was fully funded.

In addition, the new site was subject to VAT, this created a short-term cashflow constraint for the client, so MSC managed to secure a three-month VAT bridge, which would later be redeemed via a rebate from HMRC.

Ratio Law worked with MSC, successfully facilitating negotiations and completion of the complex land carve-out transaction involving a major corporate vendor. Partner, Joanna Norris played a key role in leading the legal negotiations.

Hiten Ganatra (pictured), managing director at Mortimer Street Capital, said: “Since we set up Mortimer Street Capital just over a year ago, this deal is certainly one of the most challenging, in terms of organising multiple parties.

“It demonstrates how we can provide a complex funding solution across a variety of structures, in a seamless and professional manner.

“I am very proud of all parties involved in the transaction, we all worked harmoniously with the end goal of supporting the client. Together, we are supporting SME’s build more homes in the UK.”

Simon Green relationship director – private credit at LendNet, added: “When I was introduced to the client by Mortimer Street Capital, I was immediately impressed by the developer’s enthusiasm and dedication to the project. As an experienced developer and contractor, they had a clear vision and were able to swiftly mobilize a team of highly skilled subcontractors on-site following the acquisition.

“I am confident that this will be the first of many successful projects for this developer, alongside LendNet Property LLP and Mortimer Street Capital. I highly recommend any developer seeking an innovative and forward-thinking broker to reach out to the team at Mortimer Street Capital.”

Norris said: “The team at Mortimer Street Capital demonstrated both expertise and strong attention to detail throughout the whole process. Working proactively to navigate the complexity of the finance required, address challenges and respond quickly played a key role in bringing the deals to completion for our client.

“It’s been a pleasure collaborating with the team and we look forward to working with them again.”