21 APART HOTEL & COMMERCIAL RETAIL UNITS RENSHAW STREET, LIVERPOOL
Focus Commercial sourced and arranged funding for the purchase, construction and conversion of this former retail and office building into this luxury boutique apart hotel complex with 17 apartments in and commercial units on the ground floor and basement.
What we did
Focus Commercial sourced and arranged funding for the purchase, construction and conversion of this former retail and office building into this luxury boutique apart hotel complex with 17 apartments in and commercial units on the ground floor and basement.
The new to Focus developer clients needed a guiding hand with the finance structure to obtain the funding for the purchase and construction funding.
Our developer clients did not have all of the initial funds for the deposit monies to purchase the building along with the construction funding.
Focus then structured the funding by advising the clients to see if it was possible to defer the some of the purchase monies to the vendor at the back end of the construction period, as the project would have more value back end and this would allow the vendor to obtain all of their monies they wanted for the purchase of the site.
The vendor agreed. Focus then structured the finance with the lender agreeing to allow the deferred payment at the back end.
The project was completed on time and on budget and the vendor received their full payment when the client refinanced the site at practical completion with the uplift in the valuation of the site.
Focus also advised their clients to secure long term commercial leases on the commercial element, with the clients securing 25 years leases on their commercial element, which enhanced their passive income and valuation of the project.
Development guidance, expertise and services we provided:
Secured the project site with the purchase and advised structured deferred payment of the purchase monies.
Prepared a detailed development appraisal to submit to the development lenders.
Confirmed to our returning developer client that the scheme was profitable and fit for funding presented through Focus.
Obtained development 90% LTC peak senior debt funding.
Prepared a detailed development credit paper to submit to the development lenders.
Prepared a detailed development cashflow forecast to submit to the development lenders.
Introduced the client to a quantity surveyor and commercial solicitor to help them on their project journey.
Advised and arranged for our client structural defect warranty insurance.
Project managed the whole loan process on behalf of the client, dealing with the lender, valuer, lender IMS, lender's solicitors and client solicitors.
Assisted our client with the lender’s IMS (independent monitoring surveyors) requirements.
Advised our client what is needed for practical completion to ensure a smooth refinance for the development exit finance.
Straight away, both John and his supporting Focus Commercial team wanted the best for us and our business
“The first time we met John from Focus Commercial was at a commercial and development finance event which they were only attending just like ourselves and after listening to them advise other brokers on numerous points we knew they were the right brokers for us.
As soon as we brought a development project their way, we could tell from speaking with John and he wanted to be part of our company and team rather than just being our broker.
Straight away, both John and his supporting Focus Commercial team wanted the best for us and our business and showed that throughout the whole part of the financing process even at challenging times they remained ‘focused’ and positive.
When things started to move forward with the development project, we could soon see his knowledge and contacts in the industry were invaluable and because of this it has made our team even stronger.
We have built a successful Apart Hotel 44 Renshaw Street, www.44renshaw.co.uk) a Restaurant Hardware (hardwareliverpool.co.uk).
As a developer, you can sometimes tell when a broker doesn’t fully understand development finance, but with John and his team, it felt the other way around. Their knowledge helped develop ours, and we already look forward to working with them on the next one.”
Property investors and developers and apart hotel operators
Callum & Rachel Scott
C&R Projects LTD