Omni Capital is offering a new development funding deal.
The product is designed for experienced professionals active in high-end residential property projects in London and south-east England.
The minimum loan amount is £5m and the maximum term is 48 months, depending on construction term.
Funding is available up to 100% of costs or 70% of GDV, while ‘Day One’ developer equity is there to cover deposit/fees.
Personal Guarantees are required and multiple-unit projects are preferred.
Omni Capital said it is looking for buoyant/liquid locations in London and the South-East and no planning risk is taken by the lender. It added that it will provide a “swift” in-principle lending decision and indicative pricing on receipt of a number of requirements, such as a high-level executive summary of the project, certain financial assumptions and the development and sale programme.
Colin Sanders, CEO of Omni Capital, said: “Throughout 2013 we gauged from our contacts in the residential property sector a significant and growing interest in alternative sources of development funding.
“In response, we made good use of the final quarter to pilot with a small team of brokers adept at handling development funding proposals a soft-launch version of the new product. The results were highly encouraging, and taught us – and our partners – some valuable lessons in this area of highly-nuanced lending.
“This product is unlikely to be suitable for the majority of finance brokers or smaller-scale developers. It is designed with a specific community in mind, and will be used accordingly. However, it has already stimulated much interest and serves to underpin our continuing belief in the strength, and inherent value, of the London and the south-east residential property market.”
