Centrado secures funding line

Robyn Hall

June 5, 2013

The Fund, which is well capitalised, is focussed on fast reaction times and completions on selective investments.

Mel Fordham, director of Centrado, said: “We are obviously delighted to be conduit to market for such a pragmatic, innovative and dynamic funder.

“It has, understandably, taken a long time for the managers at the fund to get comfortable with us and to establish the faith and trust required on both our parts to roll out this unique platform – which undoubtedly will have unquantifiable benefit to the industry and clients alike.

“The managers at The Fund have gone to great lengths to demonstrate the appetite to lend and indeed the liquidity available.”

Centrado will be marketing bridging facilities between three to 18 months, with interest added, rolled up or where applicable, serviced.

The Fund will consider all asset classes, not just residential, but must be in a strong and reputable location – although not restricted to London.

Pricing up to 55% of current market value will be offered at the market leading rate, terms and conditions

Pricing up to 60% of market value will be c10% IRR with fees and charges which are commensurate with the headline rate.

Pricing up to 70% market value will be competitive and reflective of the proposal. Additional security and indemnities will be considered.

Serious consideration will given to bridging finance whilst the borrower amends existing permissions or seeks new planning consent, providing there is an existing or potential income stream on the existing asset.

Development finance will be offered after the bridging expires, providing a completely “joined up” financing solution to what otherwise could be a dis-jointed and potentially precarious situation.

The Fund is able to consider and underwrite proposals for monetary advances between £1m – £100m (more if required).

A spokesman for The Fund said: “We have been successfully working with Mel and the team for a while now, and feel that it is a suitable time to capitalise on their understanding of our appetite for short term lending. Centrado’s knowledge and services are an essential part of our planned increase in this sector.”

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