Your questions answered
How does our mezzanine finance work?
- Reditum Capital’s mezzanine finance offering can help you to bridge the gap between your investment and your senior lender debt. We tailor our mezzanine finance to each individual deal, and our focus is on maximising your leverage, and therefore your return on capital employed.
Why is joint venture a better way to secure property development finance?
- Our joint venture approach to property development finance has number of key benefits. These include: we’re able to waive interest in favour of shared upside returns, we invest our own capital in the deal, we can utilise our experience and expertise to help with the project at ground level, and we’ll arrange the entire capital structure – meaning as well as providing mezzanine finance, we can also arrange the senior debt with an appropriate lender.
Why don’t we offer traditional property development loans?
- We’re not a ‘tick-box lender’. We don’t have an exhaustive list of criteria that a borrower must meet or a set range of assets that we’ll fund or lend against. Because we assess each deal on an individual basis and will consider deals that others won’t, we naturally take a more bespoke approach to property development loans.
How quickly can we provide bridging finance?
- As we know that receiving bridging finance on time may be critical to a project’s success, we make the process of providing bridging finance as speedy and seamless as possible. As soon as all the necessary documentation is completed, we make funds available to deploy immediately.
What alternative assets do we finance?
- We can provide alternative assets finance to help you buy and develop high value assets. We can also help you to use alternative assets as collateral for other projects. There are a number of alternative assets we will finance or lend against, these include:
– luxury vehicles
– rare art
– specialist businesses.
In addition, we can help companies with VAT and invoice discounting. We have no fixed list of assets we will finance – every deal is different, and so we consider each on an individual basis.
How is our development finance model unique?
- Rather than taking a formulaic approach to development finance, we create bespoke financial arrangements for every deal weundertake. This will be the appropriate mix of debt, mezzanine and equity that best optimises your upside whilst also reducing the amount of capital you need to employ.
This method of development finance means that, not only do you have less cash committed, you’ll earn a healthier return on that capital – and will consequently have more available for other initiatives