LDS and Sancus have completed their first joint transaction, supporting an experienced developer to build 52 new homes on a large brownfield site in East London.
LDS provided day one funding of £1.25m – topping up the Sancus development loan of £12.9m to reduce developer equity and increase returns.
LDS also reduced project risk, its unique Sales Guarantee providing an additional exit option and confidence for the developer and lender to proceed.
Developer
Developer Shazad Mahmood commented: “We found our experience with LDS to be excellent throughout the development financing process.
“Highly professional, motivated and efficient, displaying a high level of experience.”
Broker
Rickesh Patel, Director of Real Estate Finance at Mantra Commercial and introducer of the deal said: “We really value the support from LDS on this transaction. Rarely is a deal straightforward, and to work with a team that navigates complexities this well is a true benefit.
“As debt advisors, the LDS proposition is one that we see a clear need for in the market—clients want leverage and lenders want to reduce risk.
“In this case, the partnership between LDS and Sancus enabled our client to progress with their project and get this deal over the line. We can’t wait to do more together.”
Lender
Richard Whitehouse, Managing Director – UK at Sancus, said: “We’re delighted to be enabling the delivery of this project and supporting Shazad and GM Gardens Ltd to bring the scheme forward.
“This is a great example of experienced property lenders and advisors coming together to facilitate the provision of finance for a complex project.
“I’m very grateful to Mantra Capital for the work they put into the loan and managing the process. It’s also fantastic to work alongside LDS, without whom this project would not be progressing.”
LDS
Ben Jenkinson, Managing Director at LDS, commented: ‘’This is our largest Sales Guarantee to date, regenerating a former industrial site to unlock these much-needed new homes.
We are pleased to have partnered with Sancus for the first time. The powerful combination of LDS and senior debt is now established and transforming the development finance landscape.
‘Our maximum GDV is now £55m and we have further large transactions on the way as we support SME developers of all sizes to build and grow.”
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