LENDERS AND INVESTORS (3)

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Benefits of an Invoice Finance facility

Boost cash flow

Advance up to 95% of the value of your invoices.

The amount of cash you can release grows as your debtor book rises. You can plan ahead with confidence in your cash flow.

Negotiate with suppliers

With earlier access to cash, you can negotiate early payment discounts with suppliers.

We can arrange balance sheet lending in the UK and the USA. This means:

*Invoice finance 

*Plant and machinery 

*Stock finance

SOFR + 3%

For cash generative and profitable companies, I have a specialist corporate finance company who can offer between 5 and 7 times EBITDA averaged over the last 3 years.

The facility is unsecured and priced at BBR +4% to 6%.

UK, Europe, and the USA. 

In the UK, we start at £1m and can go up to £150m.

In Europe, we start at €20m and go up to €150m.

In the USA, we start at $5m and go up to $250m.

The purpose of the funding can be for:

*Expansion

*Acquisition 

*Merger

*Restructuring 

In addition to debt, we can also, on occasion, arrange equity, too.

Major bank based in New Jersey, USA. They have $60 Billion Assets Under Management.

The bank has the following profile:

Products:

• Stabilisation Loans

• Revolving Facilities

• Construction Loans

• Business Finance

• Long Term Finance

• Acquisition Finance

Asset Sectors- All business and property sectors

Mezzanine Strip 80% LTV

Minimum Loan $20 Million

Term 2 to 5 years

Maximum Loan $500 Million

Interest Rate SOFR +2% to 4%

Loan to Valuation 65%

Loan to Costs 65%

Geographically - All major USA locations 

This lender is very well capitalised and eager to do business.

The big issues to address are:

*Track record to reassure the lender that the project can be delivered to budget and timeframe 

*Client capital input

*Cost overruns budget availability

For large projects on the East Coast of the USA, please note:

We have two major senior debt providers offering up to 70% to 75% loan to costs

We have two equity providers willing to write cheques for $100 Million plus

We do need quality sponsors who demonstrate a track record of being able to deliver such projects. We also need sponsors with a good NET worth as there needs to be comfort for the lenders concerning cost overruns.

The solution involved both debt and equity being arranged.

Location: New York City

Project: The conversion of a office block into 420 residential units

Project costs: $350 Million

Capital structure arranged:

Senior debt of $250 Million

Equity of $100 Million

Our respective funders prefer the East Coast of the USA.

We do need quality sponsors who demonstrate a track record of being able to deliver such projects. We also need sponsors with a good NET worth as there needs to be comfort for the lenders concerning cost overruns.

A bespoke fund that is active in various jurisdictions in Europe and the USA. Their profile is:

Geographically: USA, Western Europe, The Nordics, India.

Asset Sector: Multifamily, hospitality, data centres etc

Finance Products:

• Equity

• Debt

• Whole Loan

• Mezzanine

Minimum Ticket: $100 Million

Maximum Ticket: $350 Million

Return on capital required: On the whole loan 15% IRR.

I am pleased to confirm that we are working with a major fund that is very active as below:

Geographically: UK and Europe

Asset Sectors:

Living sector

Hospitality

Logistics

Minimum loan: €100 Million

Maximum loan - No maximum loan

Maximum loan to value: 75% to 80%

Development finance: Yes

Term/Mortgage: Yes

Interest rate: Base rate +3%

With reference to the above, please see the investment criteria of a major fund below. I am working with the head of European Operation, but I also have contact with the New York and London offices. The fund can accept a yield as low as 5%.

Below are high-level requirements for our European Net Lease strategy:

Sale-leasebacks, existing leases, BTS

Fully cash buyer with zero financing contingency

$10+ tickets

10+ years with focus on longer leases, ideally 15-20 years

Single tenant only

Any type of commercial real estate including logistics, manufacturing, retail, R&D, office, resi etc.

Regarding pricing, don’t let price dictate what to send us. We like yield but we can make different deals work

Location agnostic

Tenants with Revenues of $100m+ and EBITDA of $10m+

All offers (LOIs) are Investment Committee pre-approved, signed by our CEO

I would like to provide you with details of a small team with offices in Germany and Switzerland, who invest in opportunistic or special situations. Their profile is as follows:

Background

Value added to businesses that are real estate backed

Asset managers bringing managerial skill set

Invest in special or opportunistic situations

They use their own capital and also syndicate with institutional or private funds

Geographically: Mainly Germany but Switzerland opportunities can also be considered

Asset sectors

Office space

Retail

Living space

Hotel space

Healthcare sector

Minimum investment: €2 Million

Maximum investment: No maximum due to syndication of capital

Minimum IRR%: Around 12% to 15%

Maximum term: 2 to 6 years

Examples of investments

Residential developer was recapitalized and funded to complete a project

2 star hotel being converted into apartments

Mixed use project with planning permission to build an extra 50 apartments

Distressed care homes to be stabilized as a trading business before a trade sale

Stabilized, rent producing assets that are distressed

I am pleased to advise that we are now working with a major equity fund that will invest into existing property asset platforms or property owners who wish to expand the portfolio of properties but their bank will not help. This is not development finance. This is where the client already has a strong, income producing portfolio or assets and requires to expand the portfolio. The details are:

Geographically- UK, Europe, USA

Asset sectors- All asset sectors

Investment stage- The asset portfolio must be established and generating income

Product- Equity behind existing debt

Minimum investment- £20 Million

Maximum investment - £250 Million

Term- 5 years

Profit required- 20% IRR

Business Funding Throughout Europe

This fund provides debt and/or equity into trading businesses that are experiencing “an event”.

Such an event could be:

Growth

Restructuring

Management Buy-Out

Distress/Liquidation

Company Acquisition

Loss making but heading into profit soon

Geographically – UK and Europe excluding war zones

Business sectors – All sectors except fashion, construction contractors and companies without any assets

Products

Debt/Bridge

Long Term Debt

Equity

Minimum Advance - €5 million

Maximum Advance - €150 million

Maximum Loan to Value – 65% of company assets

Term – 5 years

Return on Equity Required – 3 times money invested

This new fund has a very strong track record in funding projects on a joint venture basis but has never provided debt previously. Now, with the backing of a major Japanese Pension Fund, they are entering the UK and European markets to provide debt finance on the following basis:

Geographically: Portugal, Spain, UK, Republic of Ireland, Netherlands, and Italy

Asset Sectors: Any asset sectors including Hotels, Industrial, Offices, Residential

Products:

Ground up developmentValue Add or RepositioningStablisation loans for newly complete projects

Minimum Loans – €10 million Advance

Sweet Spot – €60 million Advance

Maximum Loan – €100 million Advance

Maximum Loan to Costs – 80% to 85%

Maximum Loan to Value – 70% to 75% open market value

Term – 4 years

Interest Rate – Bank of England base rate or EURIBOR plus 3% to 5%

Notes

• Land only funding providing additional security available
• No maximum end value on each unit.

The details below relate to a major fund that offers a wide range of funding facilities for property developers, property investors, hoteliers etc. The details are:

Geographically: Bottom half of the USA

Asset Sectors:

Multi family

Logistics

Commercial

Hospitality/Hoteliers (not conference biased)

Minimum Loan: $20 Million

Maximum Loan: $250 Million

Maximum Loan to Value: 80%

Term: 3 years + 1 year

Interest Rates: SOFR + 4%

Products: Debt, Preferred Equity, Equity

Lending Situations:

Multifamily block needing refurbishment

Stabilise a newly built asset

Commercial/ industrial where rental levels and lease extensions will increase the yield

This USA lender is a regional bank offering business and business property loans such as owner occupied mortgages upto 80% loan to value. The minimum loan is $500,000 and the maximum loan is $10 Million. The interest rate is 6.5% to 7.0%. Geographically, they lend across Florida, New York and New Jersey.

With reference to development finance, the below criteria is available.  

Preferred geographical locations – Southeast Florida from West Palm beach down to the Florida Keys.  Tampa, FL & Orlando FL.

Preferred project asset sectors i.e. multi family, residential housing, hospitality/hotels, care facilities, logistics etc – Ground up for multifamily is preferred.  We can handle other assets types on a case by case with a pre leasing component.

Maximum advance in $M  -Up to $40mm in Southeast Florida, up to $20mm in Orlando and Tampa.

Maximum percentage loan to costs advance  - 70% LTC

Maximum percentage loan to gross development value advance 70% LTV

Maximum facility term – 24 months with 2 6 month extension options

Interest rate – Based on Prime or SOFR in the 7.50% to 8.50% range today.

Bank fees – 1% in, 1% out.  Negotiable, case by case.

Personal guarantee requirements – Full PG needed.

Developer experience requirement – apples to apples within geographic area.

We have a similar division in the NY Metro region, and we have a standalone healthcare division that’s nationwide.

The below details relate to a major fund that is active in both Europe and the USA. In the USA alone they have $7 Billion assets under management. They offer a wide range of products for developers. The product details are:

Geographically: All USA

Products available:

Construction funding

Bridging

Mezzanine

Preferred equity

Syndicated facilities with other lenders

Asset Sectors: Multi family, Build to rent

Minimum Advance: $25 Million

Maximum Advance: $125 Million

Maximum Loan to value: 75%

Interest Rate:

Construction funding is SOFR+3%

Mezzanine and preferred equity is high teens

This sophisticated financier of development projects understands the difficulties of being a developer because their founding partners are developers. Subsequently, they can fund from land purchase, through construction costs and even into project exit finance (DSCR or buy to let funding).

Geographically – The USA 

Asset Sector – multi-family units and single-family units

Minimum Loan - $500K

Maximum Loan - $70M plus

Maximum loan to costs – 

Development 85% to 90%Fix and Flip 90%Bridging 75% plus

Interest Rate – SOFR (4.3%) + 5%

Fees – 2% in only and no exit fees

Terms – 24 months + 6 + 6

Note

• No need for pre-sales
• Relationship driven.

This fund is willing to offer a wide range of lending and investment products across all assets sectors and across multiple jurisdictions.

The details are as follows:

Geographically – Czechoslovakia, Greece, Switzerland, Germany, Italy, Austria, France, Spain, Poland, Sweden, Denmark, The Republic of Ireland and the UK.

Asset Sectors – All assets considered including living, hotels and logistics.

Minimum Advance - €15 million

Maximum Advance - €75 million

Funding products available:

Preferred Equity – If a developer has a pipeline of 4 projects or more a credit line of €50 million plus can be approved as preferred equity. If the senior debt is approved by a local bank at perhaps 60% of project costs, this leaves a shortfall of 40% of the project costs. Of the 40% shortfall, the fund will provide 75%, which means an overall advance of 90% of the project costs. The fund will charge 15% interest on their monies and 50% of the project profits.

Stretched Senior Debt – The fund will provide development funding up to 80% loan to costs. The minimum loan is €20 million. The maximum loan is €75 million.

Whole Loan or Term Loan – If the asset is complete and trading, this fund will provide the following:

Term – 5 years

Maximum loan to valuation – 70%

Minimum Loan - €15 million

Maximum loan - €75 million

Purpose – refinance to release equity for any legitimate purpose.

I am pleased to confirm that I am working with a trading business lender that can go that extra mile beyond the normal funders. The profile is as follows:

Geographically – UK, Ireland, Netherlands, Germany, Austria.

Products –

• Senior debt up to 4 times EBITDA
• Preferred Equity on top of the 4 times EBITDA

Business sectors –

• Businesses with recurring revenue such as IT, engineering, care homes, Business Services
• NOT retail or recruitment

Minimum EBITDA - €1 million

Minimum Loan - €4 million

Maximum Loan - €35 million

Interest Rate – Local country base rate + 6%

When will they invest -

• To purchase another company
• Buy and build a company.

Note

They will provide a facility letter for a client to proceed.

The purpose of this is to demonstrate that we can arrange straight debt upto 80% LTC or even debt and mezzanine upto 80% LTC with a lower blended interest rate. 

For development projects on the East Coast, we can arrange debt funding up to $400m and 85% loan to costs.

We can't arrange equity on ground up deals.

Where the project is already built and needs to be repositioned ie hotel to multi family, we can arrange $10m equity. 

For acquisition of existing properties like Axle, we can arrange $10m equity 

The details below relate to a London-based family office who develop out projects in the USA and also provides funding for developers in the USA.

The details are as follows:

Geographically – All USA

Products

• Bridging finance
• Development finance - Senior Debt and Mezzanine
• Ground up construction loans
• Repositioning an asset to residential loans

Asset Sector – Any asset but not hotels

Minimum Loan - $10 million

Maximum Loan –

• $75 million Senior Debt
• $20 million Mezzanine

Maximum loan to cost – 

• 75% Senior Debt
• 80% Mezzanine

Interest Rate

• Bridging SOFR (4.37%) + 3.5%
• Senior Debt – construction loan SOFR (4.75%) + 4.5% to 5.5%
• Mezzanine finance SOFR (4.75%) +7%

Fees – 1% in and 1% out

Term – 36 months+12+12

NOTES

This lender will fund part completed projects

On the mezzanine facility, this lender will work behind the senior debt providers that we work with.

With reference to the above initiative, you may find the below comments from a Lombard loan provider of interest.

We often find clients use their Lombard credit lines to act quickly on investment opportunities. We would typically structure these as demand loans with pricing at B+99bps and a setup fee of upto 0.25%, which can be repaid and redrawn at any time. Against a diversified basket of large cap, blue-chip US stocks, we offer upto 70% LTV.

What this means is that if an investor is cash poor but asset rich with a quality share portfolio, we can raise funds against the share portfolio to enable them to invest in our high yielding private credit platform.

I am pleased to confirm that I am working with a specialist fund that can provide a variety of funding products for the above sector.

Location – Rome, Florence, Turin, Bologna, Venice, Pisa. 

Milan is very difficult because of the recent history of corruption. Milan is of interest, but the project must be advanced with planning permission etc. 

Funding products available:

Preferred Equity – If a developer has a pipeline of 4 projects or more a credit line of €50 million plus can be approved as preferred equity. If the senior debt is approved by a local bank at perhaps 60% of project costs, this leaves a shortfall of 40% of the project costs. Of the 40% shortfall, the fund will provide 75%, which means an overall advance of 90% of the project costs. The fund will charge 15% interest on their monies and 50% of the project profits.

Stretched Senior Debt – The fund will provide development funding up to 80% loan to costs. The minimum loan is €20 million. The maximum loan is €75 million.

Whole Loan or Term Loan – If the asset is complete and trading, this fund will provide the following:

Term – 5 years

Maximum loan to valuation – 70%

Minimum Loan - €15 million

Maximum loan - €75 million

Purpose – refinance to release equity for any legitimate purpose.

Family office who offers credit line facilities, asset sectors against ie residential, commercial, development, refurbishment etc. 5 year track record, minimum 3m. 

I am pleased to advise you that we are now working with a global fund whose funding criteria is as follows:

Geographically - UK, The Middle East, Asia (including Australia and New Zealand) 

Products -

• Development Finance including senior debt and mezzanine
• Lines of credit for short term lenders

Asset Sectors -

• The living space (residential)
• Hotel space (if the client is a hotel chain)

Minimum ticket size - €50 Million

Maximum ticket size - €300 Million

Sweet spot ticket size - €100 Million to €150 Million

Interest rate - Base Rate + 3% to 3.5%

Maximum loan to costs - Very flexible for the right client

Corporate lending to developers by way of a credit line of €100 Million

I hope that this is of interest to you.

I am pleased to confirm that I am working with a Pan European Fund that has €8 Billion Assets Under Management that requires to deploy €1.3 Billion by year end 2025. They are very flexible in their investment criteria which is as follows:

Geographically:

• UK
• Portugal
• Spain 
• France
• Italy
• Germany
• Netherlands
• Nordics

Asset Sector: Logistics only

Minimum Size: 5,000 square meters

Maximum size: 25,000 square meters

When will they invest:

• Value added to existing assets
• Distressed assets
• Ground up projects where they will forward fund or forward commit
• Short-term tenant leases
• Sale and leaseback

I can confirm that I am now working with a fund that specialises in development finance and can offer 85% loan to costs up to $350 Million.

I am pleased to advise you that we are working with a privately owned fund that offers flexible funding to the business community. The lenders profile is as follows:

Ownership: Privately owned 

Geographically: The whole of the USA

Business Sectors: All business sectors including construction (subcontractor) businesses but Not Medicare.

Minimum Advance: $500K

Maximum Advance: $40 Million

Term of loan: 2 years

Maximum Loan to Value: 85% to 90%

Products:

• Factoring
• Working capital/growth capital
• Stock finance
• Management buy outs. Buy ins
• Seasonal cashflow needs
• Plant, machinery, property
• Mergers and acquisitions
• Special situations
• Large contract needs

I can confirm that I am working with a family office in the USA, who are interested in small bay warehouses where the existing tenant has two years or less remaining on the lease. The idea of the family office is to support the sponsor with preferred equity or common equity to reposition the asset, add value and retain. The Family Office will buy as the principal or act as a joint venture partner. 

The profile of the facility is as follows:

Geographically - high growth areas for logistics

Minimum investment - $3 million

Maximum Investment - $25 million

Term - 1 to 5 years

Minimum return - 9% to 10% of costs once stabilised i.e. buy at $20 million, needs $2 million annual income once fully let.

Sponsor "skin in the game" required - This depends on the developer/sponsor/client preferred involvement. If the sponsor wishes to input a high equity capital, then this is ok. Alternatively, if a sponsor wants to input zero capital and just enjoy a "Promote Fee" that is also acceptable.

Major source of project funding 

On the islands, I can arrange:

*Bridging 

*Mezzanine 

*Development 

*Mortgages 

I am pleased to confirm that as an office we continue to evolve to provide an ever-increasing number of solutions for our respective clients. With this in mind, I would like to advise you of some recent success stories in the Caribbean.

Business start up requiring banking facilities in the Dutch Caribbean

Bridge loan secured against a luxury villa in St Barts

Mezzanine finance secured on a hotel

$50 Million construction loan to build out 80 condo and spa resort

$15 Million resort/restaurant

$20 Million residential villas facility

I am pleased to confirm that we are working with a major fund that is able to syndicate with pension funds to provide large project funding.

The profile is:

Geographically:

Cayman

Bahamas

Barbados

Turks and Caicos

Dutch Caribbean (Aruba, St Martens)

Products and Asset Sectors-

Commercial Mortgages

Development Project finance

Residential development to sell

Hotel development to operate

Minimum Loan $15 Million

Maximum Loan $50 Million but $100 Million + syndicated

Maximum Loan to Costs 70% to 75%

Interest Rates 5.25% to 6%

Term- Maximum 5 years to 8 years

Notes:

The Sponsor 30% of costs input can include pre-sale deposit

Pre-sale of 40% of the project are the target

The Syndication Club is a major bank and a pension fund for funding of $100 Million and above.

Cayman

Bahamas & TCI

Barbados

Min

Varies on request

Max 

Based on request

Currencies

USD & KYD

USD & BSD (Central Bank Approval)

BBD (USD exception basis & CB Approval)

Rate

4%+ 

LTC

70-80%