Marick Capital secure £24m development facility for Churchmanor Estates
Marick Capital advised The Churchmanor Estates Company plc in securing a £24m development facility from Close Brothers plc to fund the second phase of Stane Retail Park, Stanway, Colchester.
The development, located to the west of Colchester City Centre, will provide 173,000 sq ft of retail when built over 11 units including 100,000 sq ft pre-let to B&Q and Aldi.
Marick Capital constructed financial models for the developer and lender, prepared and wrote a presentation document to approach the lending market to secure development finance, negotiated acceptable terms with Close Bros for the facility and assisted the developer on the facility documentation and due diligence required to complete the financial transaction.
Alan Rosten, Finance Director at Churchmanor Estates, said: “We are delighted to have secured funding for this prestigious project, which has expanded upon valuable existing relationships with Marick Capital and Close Brothers. Applying our proven collaborative approach, along with Marick’s funding expertise we were able to complete this transaction despite the impact of the Coronavirus pandemic. Close Brothers’ commercially focused approach supported the delivery of a funding package, which not only supports all stakeholder requirements but also allows us to minimise our overall construction programme. A great achievement by all in such challenging times”.
Lee Daniel, Business Development Director, of Close Brothers Property Finance, added: “It has been a pleasure working with both Marick Capital and Churchmanor to provide funding for the phase II development at Stane Retail Park. This was a complex deal with an unusual security structure that called for all parties to work together to ensure a successful conclusion. Marick Capital prepared a detailed funding pack and comprehensive cashflow forecasts, which helped simplify the assessment process on a less than straightforward transaction and we look forward to working with both Churchmanor and Marick Capital in the future”.
Should you require advice on project or development funding for a real estate project please contact Nigel Pope, Mark Smith or Dominic Reilly at Marick Capital.