In the world of real estate development, unexpected challenges and delays are not uncommon. Developers often find themselves at the mercy of factors beyond their control, such as planning complications, tenant changes, and funding uncertainties. However, the ability to adapt and find reliable financial partners is crucial to success in this industry.
Navigating Development Challenges with Momenta Finance
It is in this context that we highlight a successful Property Development Finance arrangement backed by Matthew Yassin, a 25-year industry veteran and Managing Director at Aquilae Capital Advisory. This collaboration involved a development finance facility of £842,000 with a 16-month term tailored to address specific project requirements. These needs included a refinance of £192,000 and an upfront provision of £100,000 to the borrower. Subsequently, monthly drawdowns of £100,000 will be effectively managed under the guidance of an appointed MS. The scheme was structured with a robust 70% Loan-to-Gross Development Value (LTGDV) and a well-defined exit strategy to refinance onto the Buy-to-Let (BTL) platform, allowing the borrower to retain the units within their portfolio.
Rizvan Raja, the Managing Director of Rizuma Group, who are developer investors focused on land , planning and development projects across London and the South East, faced an unexpected and challenging situation during the ground-up development project. The project had advanced to the slab stage when the incumbent finance provider abruptly pulled funding. This sudden stoppage had dire consequences, which impacted the schedule and progress made by the borrower.
With the construction poised to move forward , the developer was in dire need of a new funding solution to keep the project on track. Faced with the daunting task of finding a suitable funding partner to rescue the project from this precarious situation, Matthew made a pivotal decision to collaborate with Momenta Finance, based on several key factors:
- Commitment to Funding: Momenta showcased an unwavering commitment to providing funding, even in the most challenging circumstances, offering a lifeline to the developer in their hour of need.
- Commercial Approach: Momenta adopted a commercial approach, recognizing the unique challenges faced by the project and tailoring a solution that met its immediate and long-term financing requirements.
- 70% LTGDV Product: Momenta offered a compelling 70.5% Loan-to-Gross Development Value (LTGDV) product. This product allowed the developer to refinance from day one, access additional funds, and proceed with the project, regardless of the delays caused by external factors.
Matthew commented: “Throughout the funding process, Momenta Finance exhibited tenacity and a strong commercial approach. They addressed difficult questions and challenges with professionalism and dedication. Owen Fish, a Property Specialist at Momenta Finance, played a pivotal role by actively engaging in discussions, debates, and problem-solving. His contributions significantly contributed to the successful conclusion of the deal.”
The successful collaboration between Aquilae Capital Advisory, Matthew Yassin, and Momenta Finance stands as a testament to the importance of trusted partnerships and innovative financial solutions.
Development Finance Features:
Here’s what you can expect from our Property Development Finance:
- Loans of up to £2 million
- 24-month term
- 1st legal charge
- Leverage up to 75% LTV and 85% LTC
- Interest rate starting at 1% per month
About Momenta Finance
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta offers a panorama of lending options, including unsecured and secured business finance, bridging and cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank and upholds the highest industry standards.