FAQ
- What is Strata?
- What is the decision making process for making loans?
- What type of developments are suitable for consideration by Strata?
- What is the term of a typical Strata loan and how is interest charged?
- How complicated is the loan approval process?
Strata is a stand alone business that has been created for the sole purpose of providing mezzanine funding to experienced developers with appropriate residential development schemes in the south of the UK Back to Top
What is the decision making process for making loans?
All new development opportunities are reviewed by Davon as Funding Adviser. Detailed discussions are carried out between Davon and the developer to ensure the experience of the team and the key aspects of the project meet the criteria for Strata. If that is established then Davon will visit the site and analyse the financial viability of the scheme with the developer. Indicative heads of terms can then be issued. Davon then works closely with the developer to collate all detailed information required in order for the usual due diligence to be completed and a formal approval of a facility to be granted by the Strata management team. Lawyers are then instructed and Davon liaises closely with the developer, the senior debt lender and all the professionals to ensure matters proceed expediently to completion of the transaction. Back to Top
What type of type of developments are suitable for consideration by Strata?
Strata has been set up to provide funding for residential developments located in the south of the UK. Typically, projects will have a total development cost of c£2.5m upwards and will demonstrate a healthy profit on cost. Strata will only grant loans to schemes with detailed planning permission and in the South of the UK. Back to Top
What is the term of a typical Strata loan and how is interest charged?
All Strata loans are for a period of twelve months with interest charged on a fixed rate basis at 30% p.a. Loans can be repaid at anytime, subject only to a minimum of six months interest being charged. If repayment is made at any time after six months from drawdown, interest is charged for only the length of time that the loan has been outstanding. Back to Top
How complicated is the loan approval process?
One of the main aims of Strata is to provide a responsive service to developers. Once all the relevant information has been provided by the developer to the Funding Adviser and the site visit has taken place, the Funding Adviser and Asset Manager together make the credit decision. Back to Top