Mixed-useLeeds
£47m
Part-built scheme recapitalised after contractor insolvency. Replacement senior with £6.4m mezzanine.
Issue — incumbent lender in default; works stopped five months.
What we fund
Complex situations we fund
Where a standard lending conversation has already failed, or the incumbent lender will not extend.
01
Part-built schemes after contractor insolvency
02
Replacement senior where the incumbent facility is in default
03
Part-let commercial and mixed-use assets
04
Planning-constrained and consent-lapsed sites
05
Distressed refinance ahead of an enforcement deadline
06
Schemes requiring cost-to-complete funding above original budget
07
Portfolio break-up and asset-by-asset release
08
Equity introductions where debt alone will not close
Structures
Structures we place
These transactions are structured backwards from the constraint, not forwards from a product.
Replacement senior
Takes out the incumbent lender at par or at an agreed discount, sized on current value and verified cost to complete.
Senior with mezzanine behind
Where replacement senior alone leaves a gap, mezzanine is placed behind it on a coordinated intercreditor basis.
Part-completion funding
Facility sized on cost to complete with a new contractor, monitoring surveyor reappointed and collateral warranties re-assigned.
Equity introduction
New equity introduced alongside the sponsor where the capital stack cannot be closed with debt, on terms agreed before any approach.
Underwriting
What lenders test
Three things have to be nailed down before any lender will price a distressed or part-built asset.
Verified cost to complete
A current QS report, not the original appraisal. Credit assumes the remaining cost is higher than the sponsor believes until an independent monitoring surveyor confirms otherwise.
Contractual continuity
Collateral warranties, step-in rights, design liability and retention position after an insolvency. Where warranties are lost, the cost of re-procuring design responsibility comes off value.
The incumbent lender
Whether they will accept par, a discount, or a standstill sets the whole timetable. Approaching new senior before that position is understood wastes the first fortnight.
Track record
Selected complex transactions
Mixed-useBristol
£11.2m
Part-let mixed-use block refinanced ahead of a maturity deadline, with a capex tranche for the vacant retail element.
Issue — four weeks to maturity at instruction.
General locations, clients unnamed. Completed facility sizes, illustrative only — not an indication of terms available to you.
Questions
Common questions
General information on how these facilities are structured and placed. Not advice, and not an indication of terms.
Can you refinance a facility that is already in default?
Yes. Replacement senior is a large part of what we place. The first step is establishing whether the incumbent lender will accept par, a discount or a standstill, because that sets the timetable.
What is needed to fund a part-built scheme?
A current independent cost-to-complete report, the contractual position on warranties and step-in rights, and a route to reappointing a contractor and monitoring surveyor.
How quickly can a distressed transaction move?
Indicative terms in 24 hours, but completion depends on valuation, the QS report and the incumbent lender. Where a deadline is fixed, we tell you at the outset whether it is achievable.
Do you introduce equity as well as debt?
Yes, where the stack cannot be closed with debt alone. Terms are agreed in writing before any equity provider is approached.
Enquire
Send us the situation
Asset, current facility, the constraint and any deadline is enough for a first view. If it is not achievable we will say so.
Direct line
+44 (0)20 [ 0000 0000 ]