Corporate

Strata was created with the benefit of the experience of Davon, Strata's Funding Adviser, in the arrangement of mezzanine finance for residential developments over many years.

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. In the period to the end of December 2010 it provided finance for 21 schemes, with a total gross development value of circa £88m and average an average loan size of circa £600,000.

Developers with schemes that may require finance should contact Davon at  mail@davonltd.com for further information.