Strata-providing mezzanine finance to developers with track record for schemes in the south of the UK

Strata was formed by evolve Fund Services Limited ('evolve') and Davon Limited ('Davon'), two businesses that specialise in the property sector in the UK. The main aim of the two companies was to establish a business specialising in mezzanine lending that offered a simple, straightforward and transparent structure for UK residential developers in the South of the UK.

Key benefits for developers include:

• A substantial increase in developers rate of return with mezzanine funding against the traditional debt only structure;
• A professionally structured and well funded organisation with a responsive approach to the provision of mezzanine finance to residential developers;
• An increase in the number of developments that can be undertaken as the use of mezzanine allows the developers capital to be split amongst a number of schemes;
• A freeing up of existing capital to allow it to be used for early stage funding (planning, options, conditional contracts, etc. which are difficult to fund with third parties);
• The cost of funds is known from the outset as opposed to contentious profit share arrangements; and
• An ability to take on larger schemes than would otherwise be possible.

Strata was launched in April 2007 and it has now traded for 16 months. It has provided finance for 13 schemes, with over £7.5m advanced on loans with a twelve month term with a further top up loan expected for two of the schemes shortly. Developers with schemes that may require finance should contact Davon for further information. Please click on the 'Contact Us' link above.