Sweetchilli - Property News & Market Reports

Red Chilli Structured Finance announced today that it had arranged a multi-million funding package for a commercial investment in one of the UK’s regional city centres.

“Funding within the past two months has become a challenge with many banks withdrawing from the market and those remaining changing their lending criteria on a daily basis” said Dorothée Queyroux, senior broker at Red Chilli. “However, there are still a number of lenders who are prepared to finance commercial investments and by working closely with these lenders and clearly understanding their criteria, we are still able to arrange competitive funding packages for our clients”.

Red Chilli has been able to secure funding terms for a variety of commercial investments over the last few weeks. “We are still able to arrange funding for deals that stack up economically and which are backed by serious developers/investors. We have found that equity investors have been very active recently and are generally in a position to negotiate attractive deals and move quickly“ said Bernard Frazer, a partner at Red Chilli. “Lenders still have appetite for supporting such investors”.
Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.

Call us on 0845 210 5000 to discuss your funding requirements
http://www.redchilli.com

RedChilli Structured Finance
55 - 56 St James’s Street, London SW1A 1LA

written by Simon Page \\ tags: broker comments, commercial investment, developer, Development Finance, Dorothee, investor, Property News, Successsful Deals

Red Chilli Structured Finance announced today that it had arranged a £7.4m re-finance facility for a large developer and investor in one of the major regional city centres.

Dorothee Queyroux, Senior Broker at Red Chilli Structured Finance stated ”when the 152 unit development was physically completed, the developer took the decision to retain a number of apartments as an investment. The flats were initially up for sale but following the credit crunch, holding 22 of those apartments as long term investments suited the company’s strategy. Although the apartments were vacant, we were able to demonstrate rental demand and arranged the facility with a guarantee from the developer in order to support the interest payment until the rent could service the debt.”

The company took the view that, as a result of the current constraints in the mortgage market, rental demand was likely to grow stronger and the logical approach was to take a long term view. The takeout facility Red Chilli was able to arrange achieved that objective.

Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.

Call us on 0845 210 5000 to discuss your funding requirements

www.redchilli.comRedChilli Structured Finance
55 - 56 St James’s Street, London SW1A 1LA

written by Simon Page

Red Chilli Structured Finance’s property finance website design gets mentioned on www.smashingmagazine.com

“Colors are capable of having a very significant impact on visitors’ perception of the design. However, when using colorful images, you need to make sure that you use the right ones. Blue, red and green are most attractive colors among men and women. Women don’t like brown, orange and purple most, while men feel uncomfortable with brown, purple and pink. RedChilli uses the color red very powerfully. The vivid image in the middle of the page is memorable, attractive and informative. And this is what effective design is all about.”

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Full article here:
http://www.smashingmagazine.com/2008/07/29/vivid-imagery-in-modern-web-design

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written by Simon Page

This follows their announcement on 8 June 2008 of their structuring of the joint venture between Beetham and Russian giant developer Mirax. The £1billion scheme consists of a luxury hotel on the lower part and of upmarket residential apartments on the upper part.

Dorothee Queyroux, Senior broker at Red Chilli commented “The package was structured between two banks on a pari-passu basis. Having been involved since the beginning of the negotiations between the site vendor and the Beetham Organization, we were able to put together a tangible and attractive proposal. This is evidence that banks are still lending and keen to support the right project.”

“Raising finance for speculative property development schemes in the current market is not particularly easy. However, by working closely with lending institutions and through a solid understanding of their criteria in the current climate, we were able to put together a competitive facility. Being able to attract a partner of Mirax’s calibre further demonstrated the appeal of such a scheme.”

Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.

Call us on 0845 210 5000 to discuss your funding requirements

www.redchilli.com

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written by Simon Page \\ tags: Featured

Red Chilli Structured Finance announces that it has arranged a £6m package for a block of serviced apartments in one of the UK’s regional city centres.

“The challenge on this project was to find a lender who understands this niche product in order to create a long term relationship”, said Dorothee Queyroux, senior broker at Red Chilli. “Serviced apartments are growing in the UK but remain an unknown market to the majority of traditional lenders. Not knowing how to classify this asset (residential or hotel) makes it difficult to fund in particular when no trading history is available.” The client, an experienced developer and investor, is looking to build a portfolio of serviced apartments across the UK. “It was critical that we found a lender that not only understood the asset class but which also had the appetite to support our client’s growth plans”.

“We are still getting some very good terms for experienced clients and banks are still active. However, the current climate is testing to say the least and banks are increasingly choosy as to which projects they back. Knowing which lenders do what and how best to structure a funding package is where Red Chilli can really help”.

Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe. Call us on 0845 210 5000 to discuss your funding requirements. www.redchilli.com

Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.

Call us on 0845 210 5000 to discuss your funding requirements

www.redchilli.com

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written by Simon Page

Its main focus will be to arrange finance for property developments and real estate transactions in the German market as well as the Central and Eastern European regions and Russia. In addition Red Chilli will source investment opportunities and advise its international clients on acquisitions and joint ventures as well as provide consultancy services to foreign investors who are seeking to explore new markets.

”The ability to provide innovative tailor made funding solutions has become increasingly important, especially in the current hostile funding climate” stated Henrik Sassenscheidt. “Germany is a sustainable and attractive investment market, as both the macro and micro economic outlook remains very promising. The market has become more transparent and dynamic in recent years and therefore more attractive to foreign investments”.

“Our excellent local network and the knowledge of the German as well as emerging central and eastern European markets enable us to offer our clients a truly holistic approach to their real estate needs and, by working hand in hand with them, we aim to add value at every stage of the process”.

Red Chilli Structured Finance is an independent commercial property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.

Call us on +49 30 700 140 490 (Germany) or 0845 210 5000 (UK) to discuss your funding requirements.

www.redchilli.com

View the German version

Henrik Sassenscheidt
henrik@redchilli.com
+49 30 700 140 491

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written by Simon Page \\ tags: Featured

Red Chilli announces that it structured a joint venture in Blackfriars Tower between UK developer the Beetham Organization and giant Russian developer Mirax, through which Mirax has taken a 50% stake in Blackfriars Tower. The £1 billion scheme is located in London’s South Bank and consists of a luxury hotel on the lower part and of upmarket residential apartments on the upper part.

“The Beetham Blackfriars scheme is a unique project which we knew could potentially attract a great deal of interest from investors” said Mark Jeffers, a Partner at Red Chilli Structured Finance. “For us, the key to this deal was to engineer a truly synergistic venture in which we created value on a number of levels. The ability to sell a 50% stake at such an early stage of the project was clearly an achievement. However, the joining of forces of one of the UK’s most promising developers with a conglomerate of Mirax’s calibre and international presence was very desirable. The apartments in the scheme will be aimed at the international market, and having our Russian friends as partners increases the reach into this increasingly important economy”.

Red Chilli also arranged an £80m loan with Royal Bank of Scotland as part of the agreement. Commenting on the structure of the overall deal, Mark Jeffers added “in the current market place, it is essential to fully understand our clients’ needs and to structure creative funding options that meet those needs. By working very closely with the Beetham Organization, we can clearly focus on creating value at every stage of the process. The structuring of the Blackfriars JV is evidence of the effectiveness of our approach”.

Stephen Beetham, head of the Beetham Organisation and Young Property Personality of the Year commented: “This is a very exciting development for the Beetham Organization. The JV structure Red Chilli created was of particular appeal as it enabled us to underpin the long term value of the project, while allowing us to extract some value at the outset for deployment in what is now a very interesting market”.
Red Chilli Structured Finance is an independent property finance advisory firm specialising in arranging funding for property projects in the UK and all over Europe.

Call us on 0845 210 5000 to discuss your funding requirements.
www.redchilli.com

written by Simon Page \\ tags: Featured

A giant Russian property group has teamed up with UK developer the Beetham Organization to build a £1bn, mixed-use Blackfriars tower on London’s South Bank.

Mirax, the group led by entrepreneur Sergei Polonsky with a £5bn development programme across the globe, exchanged contracts to buy a 50% stake in the 1 Blackfriars project on Wednesday morning this week.

The deal is a coup for Beetham, whose 33-year-old founder, Stephen Beetham, was named Young Property Personality of the Year at April’s Property Awards.

It is also a stunning feat by 36-year-old Polonsky, who owns 85% of Mirax and whose development portfolio already stretches from Russia to the US, Turkey, Switzerland and Ukraine.

The tie-up is also a huge lift for London real estate and the construction markets, which have suffered a serious slowdown this year.

In addition, it shows how the capital’s economy as a whole is becoming a magnet for cash from fast-emerging economies, such as Russia, India and China.

All parties declined to say how much Mirax had paid for its stake in the project, but market sources said it was £100m. The Beetham Organization only bought the site, formerly Sainsbury’s headquarters, for £56m in 2006.

Polonsky told Property Week: ‘As an international real estate group we love London. We believe it is the centre of the world. It is a city that has been on our radar for some time and we are delighted with this deal.

‘Not only that, but we believe that business deals like this can help to Foster closer relationships between nations such as Russia and the UK as a whole.’

Stephen Beetham said: ‘We were looking for a partner because this is a billion-pound development. The previous largest development we had completed was our Manchester tower worth £125m but, although this is the same height, construction costs and values in London are so much more.

‘Because of that we decided to find a partner and, as soon as I met Sergei, I knew we had so much in common. Beetham has never sold a project ahead of completion and Mirax have given us the same guarantee here.’

This article was published under the headline ‘Black Russian’ in the property week magazine by Laura Chesters

written by Simon Page

£18 million residential property development finance for 90% of total costs (including soft costs and interest roll-up)

This experienced developer required 90% finance for the construction of 115 apartments and ground floor retail speculative scheme in this prestigious South Coast location. The project returned 20% profit on cost. We were able to arrange the development finance through a lender who provided 90% funding in exchange for 12% share of the projected profit (expressed as an exit fee of 2% of GDV).

For more information on our development finance: www.redchilli.com

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written by Simon Page \\ tags: Featured

£25 million for 100% development property finance (speculative)

Our client required 100% development finance for a phased 48-house development property in this prestigious London suburb. The projection was showing a 20% return on costs. Rather than arrange a typical structured package with different lenders (senior debt, mezzanine and equity) requiring inter-creditor agreements and three different sets of solicitors, we were able to bring a lender new to the UK market which was able to fund the whole development under one facility. The package we put in place allowed the developer to keep 55% of the profit with the lender taking a 45% priority return.

For more information on 100% finance: www.redchilli.com

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written by Simon Page

Independent property finance advisory firm Red Chilli has outsourced its disaster recovery and backup systems to Thinking Safe.

The company, which specialises in arranging funding for property projects, will use a service which automatically backs up data as it is stored in the company’s server portfolio. Previously, Red Chilli IT staff had to back data up to disks in servers and stream it to tape, taking up system resources and requiring multiple tape devices.

Red Chilli head of IT Simon Page told silicon.com: “This is a solid piece of software that gives us peace of mind that our data is secure. We store a lot of confidential financial information and safe, secure back up systems are critical to our business. It would have a big impact if our systems went down and we couldn’t access our data.”

Red Chilli will pay up to £8,000 per year for up to 170GB of storage. Charges are per usage, so if the company uses more space, the rental will go up.

However, the company has made savings in staff time checking tapes and the cost of tape stock itself.

By Julian Goldsmith

Published: 23 May 2008 17:05 BST
Read silicon.com article here
Storagenewsletter.com article here
Read snseurope.com article here

ThinkingSafe website

written by Simon Page

Red Chilli Structured Finance has strong relationships with over 500 key commercial property finance lenders offering senior debt, mezzanine finance, joint venture partnerships and equity assuring our clients receive quick and effective route to any finance needed with a special emphasis on maximising return on capital.

“Our property advisory team will be happy to discuss your requirements and explore how we can help in complete confidentiality. We do not charge any fees until a transaction has been successfully completed - and our advice is free.”

For more info see: www.redchilli.com

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written by Simon Page