HALLCROFT STRUCTURED PROPERTY FINANCE
Experts in property development finance
Hallcroft operates nationwide from offices in the City of London. Our expertise covers the property market, with particular emphasis on residential, commercial, retail and mixed use projects.
The Hallcroft Difference
Three words sum up the Hallcroft difference: bankers, team, delivery.
By 'bankers' we mean that Hallcroft's key employees are former bankers. When you are presenting to bankers, it helps to have been one.
By 'team' we mean that everything we do at Hallcroft maximises the team effect. We build productive relationships with lenders, solicitors, accountants and quantity surveyors and indeed many introductions to Hallcroft come via these same professionals.
By 'delivery' we mean that, once we feel a project is feasible and has merit, our focus is on following it through, delivering the package and getting the job done.
THE LENDING MARKET – HOW IT DOES BUSINESS
Why we understand
Hallcroft's Principal, Adrian Cormican, formerly a property lender with Clydesdale Bank.
His experience – across commercial, residential, retail and mixed use projects – has propelled
Hallcroft Structured Property Finance into a different league.
Between Client and Lender
'We are the conduit between client and lender', says Adrian Cormican. 'Our clients come to us with property transactions they want to finance. Because we know the lending market and how it does business, we know which lenders may be right for your project – and we know how to negotiate the right deal for you. We package a deal that works for you and then approach selected lenders, picking and choosing for each project'.
'Our aim is to take the hassle and worry away from clients'.
'Crucially, experience shows that pricing isn't everything. We emphasise delivery above all, seeking always the right deal for the right client with the right project.'
Managing the process
'Arranging finance is just the start of the process. Then there are legal aspects, quantity surveys, bank
valuations... in short, making sure that the various parties are doing what they said they'd do and that they have the information they need to ensure timely progress.'
In addition to property development funding of, typically, 80 – 85% of the cost of a project, we also offer
Mezzanine Finance designed to cover the shortfall between what the bank is prepared to lend and the funds
needed to take a project forward. Mezzanine can be very beneficial to clients, enabling them to increase
return on equity: Hallcroft's approach is to maximise the level of Mezzanine Finance available against pricing.
To find out more on Mezzanine Financing please contact us by clicking here.
The Hallcroft Difference
'Some brokers in our business haven't been bankers. We have. That's why, when talking to a bank, we understand the language and can consider risks from a banker's point of view. In our experience, some clients have little interest in talking to banks'.
'They would sooner build a solid relationship with a trusted intermediary like Hallcroft'.
THE BEST VALUE
And how we achieve it
Finding funding for your property project can be a tough and time-consuming process. Who has the right
source of funding for your project? And – even when you secure an offer – how do you know it's right for you
and the best value?
More For Your Money
Hallcroft can settle questions like these, leaving you free to get on with what you do best, building your
business. Our standard service - our one-and-only level of service – comprises the following:
We start by listening and talking, assessing your proposal to achieve an in-depth understanding of your
intentions and the funding you'll need. You can rely on an honest, straightforward opinion from us and
practical advice on what to do next.
In the belief that nothing succeeds like success, we like to suggest that we introduce you to clients and projects somewhat like your own – so you can hear other people's opinions of Hallcroft first-hand.
Next, we prepare a proposal and consider which lenders might be right for you, negotiate terms, analyse results, review the implications of small print and report back to you.
Once you agree we're making significant progress, we will work with you, your solicitor and the bank to agree a realistic date for the loan completion. And of course we will continue to work closely with them to deal with any legal matters.
With the project underway, we'll work with the entire professional team to ensure the pace of progress is
maintained. Specifically, we will liaise with the lender, the bank's valuer and the surveyor as required. We will
keep tabs on the bank's valuation and advise you of any implications. In short, we will do all we can to assure
the smooth passage of your project from inception to conclusion, avoiding the many pitfalls that can beset
EXPERIENCE ACROSS THE BOARD
Prestigious residential project, Fulham
The re-development of a period house in a lovely old street in this south-west London village suburb. Conservation protocols meant that the shell had to be preserved to ensure that the property remained in keeping with its neighbours. A full basement dig preceded a total refurbishment, working from within the preserved shell to create a home of 3000 square feet.
Hallcroft raised an 85% mix of senior debt and mezzanine, with the client injecting 15% of costs. Critically – and with the active involvement of Hallcroft - the 12-month project ran to time and budget, with the final result going to market at £4.4million.
Improving the outlook, Twickenham
A derelict site at St Margaret's, with some 30 wooden shacks marring the appearance at the end of what was otherwise a lovely residential road. The previous owner had won planning permission for two detached houses and two maisonettes. Hallcroft's client wanted to realise the plan.
Hallcroft raised 85% of the funds needed, with the client supplying the balance. Because the project was carefully managed and progressed over an 18-month period, Hallcroft's client was able to maximise his margin and, on completion, applied the profit to another three transactions.
The net result was to improve the outlook: for the client able to enjoy a business building opportunity, for Hallcroft with more work in the pipeline and for the neighbours in the street, who recognised that the development improved the appearance and desirability of their street.
Commercial portfolio financing
Hallcroft's clients had a mix of retail, residential and industrial property interests, with the residential part of the portfolio including a buy-to-let business, which the bank had declined to re-finance.
Hallcroft's clients sought advice, the result being that we took over the debt. Negotiating a re-structuring of the buy-to-let business and advising the client closely on potential options, we packaged a five-year loan deal and took it to completion on terms which were readily acceptable.
For our client, we were the right people at the right time.