Development Funding
Few people understand the rigours of development finance more than those who are intrinsically connected to it. That’s why ROC Invest can offer principle funding to developers, both privately through our network of HNW investors and commercially through established lenders.
Boutique Property Finance
We offer competitive finance for projects throughout the UK. Our private funding lines enable us to adopt a flexible approach to finance with quick access to funds and a competitive edge on existing offers presented to us. Each project and applicant is assessed individually and aside from the initial arrangement fee, interest is payable only on funds drawn down as opposed to the whole facility.
Back to topMezzanine Finance
Enabling a hybrid of debt and equity mezzanine finance, which allows the lender the right to convert debt to ownership or an equity interest, can be the optimum path for developers looking for funds. ROC Invest’s mezzanine funding arm was established in the wake of a reduction in the availability of mezzanine finance for developers by mainstream banks, in particular the Big Four. We offer a wide range of options, contingent on the project and developer history.
Back to topBridging Loans
Short-term commercial bridging finance can be a lifeline in the development industry. We offer unique, flexible and competitive solutions to our clients focused on the asset and security, as opposed to the applicant, thereby enabling a speedy resolution and granting of funds. Our rates start from 0.56% (6.9% APR compound) on loans between £400,000 to £20million. For exceptional projects we consider up to 80% LTV.
Back to topDevelopment Opportunities
For developers actively looking for new projects and sites we regularly appraise new development opportunities within both the residential and commercial sectors. This can range from houses with development potential, vacant freehold buildings, land with and without planning permission and commercial and brownfield sites. Contact our office for more information.
Back to topQ. What sectors/types of properties will you fund?
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We focus primarily on single and multi-unit residential schemes, but do consider select mixed-use commercial/residential and student accommodation schemes also.
Q. Where does your money come from?
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On private and mezzanine funding deals our funds come from High Net Worth investors who offer finance both individually and as a group. Bridging finance is brokered from reputable commercial lenders.
Q. What is the typical application process?
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Stage one - we undergo due diligence, assess your scheme and release indicative head of terms. We then meet with the client and visit the site. Once the term sheet is signed the scheme will go to credit. Legal due diligence and valuations are then done prior to completion.
Q. How quickly do I get indicative heads of terms?
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As long as you can provide all the necessary information, we can supply terms within 48 hours and typically they then take around 6 weeks to close. Bridging cases can be closed within a week, contingent on the information being readily available and accessed.
Q. What is the maximum loan-to-cost ratio you provide?
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Typically we grant 90% of costs as debt (net), although we have the capacity to do up to 98% of costs at a fixed cost with a charge.
Q. What is the maximum debt loan-to value you provide?
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75% of Gross Development Value (GDV).
Q. What is the maximum % of equity you provide?
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We are comfortable as long as our clients have 10% of equity invested in the project.
Q. What is the minimum/maximum size of loan/investment?
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We are currently targeting £100k-£25m equity and £1m plus debt requirements, however we are happy to look at deals of varying size.
Q. What is your maximum term?
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Typically two years.
Q. What guarantees do you require?
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We require personal guarantees such as cash on account, a charge on an asset etc.