ALEXANDER PROPERTY FINANCE

 PROPERTY DEVELOPMENT AND INVESTMENT FINANCE

We specialise in arranging property finance and are members of the National Association of Commercial Finance Brokers.

With many years experience in banking and finance we have well established connections with a large number of banks and financial institutions.

Development Finance: Our aim is to assist in obtaining development finance for projects involving houses and apartments, including property conversions and refurbishments.

As at June 2009 there are far fewer banks in the market place than a year or two ago and those that continue to be active are more conservative in their approach than was once the case. This may well mean that developers find it difficult to obtain adequate funding through the usual channels and alternatives are therefore welcomed. We aim to help in solving this problem so do pick up the telephone ( 01491 573609 : David ) or email us to explore the possibilities: alexpropertyfinance@btinternet.com

What we do: Our normal objective is to raise loans relative to overall costs for each property development scheme. In practice this might range from 60% to 100% of required costs, including interest roll up. Schemes that are particularly attractive to funders at the moment are those where the site owner agrees to enter into a Joint Venture. Assuming the site has either no finance or only a modest amount outstanding, the funder will consider advancing all of the development costs and the interest roll up. The site owner receives a deferred consideration and an appropriate return as the completed units are sold.

Our client's requirements are presented to a selected lender and when appropriate to mezzanine or equity providers as well so that  suitable funding packages are achieved. We are able to introduce joint venture partners on occasion.

As at June 2009 we have seen significant reductions in interest rates. These have been in place since autumn 2008 and confidence appears to be slowly returning. This in turn is leading to an increase in deal activity. There are early signs in the market place that house sales are picking up again.

We now look forward to a steady easing of credit conditions which will help in achieving a gradual recovery within the housing market. Indeed, there are many potential home buyers who are currently renting and as they perceive the market to be turning there is likely to be an increase in the demand for quality new properties.

The size of deals considered is normally in the range from £0.5m to £10m although we are quite prepared to act on sums outside those figures. Developers should be able to demonstrate a successful track record.

Commercial Mortgages: We arrange term finance for good quality commercial properties either owner occupied or as pure investment situations.