When our client was offered a cracking off-market development opportunity, they wanted to pounce.
But they didn’t have the cash to pay for a deposit, due to two related problems:
- The client’s working capital was tied up in other development projects, which were suffering from pandemic-induced delays
- The construction lender for those projects wouldn’t agree to a cash release
The client approached us to arrange a short-term funding solution, so the opportunity wouldn’t slip through their fingers.
Given that CPC had arranged the current construction finance on the current projects, we were able to bring in a mezzanine lender into the construction deal during construction.