Ilford Tower — 115 Units

An established London developer had planning permission for a 15-storey residential tower in Ilford — 115 apartments across a mix of 1, 2 and 3-bed units with ground-floor commercial space. Total development costs were approximately £38m with a GDV of £58.5m.

The developer had significant equity but not enough to bridge the gap between senior debt (typically 60–65% LTC) and total costs. They needed a complete capital stack: senior debt, mezzanine, and potentially equity co-investment — all coordinated to work together.

Multi-layer capital stacks are complex to structure. The senior lender needs to be comfortable with mezzanine sitting behind them. The mezzanine provider needs to agree intercreditor terms with the senior lender. And if equity is involved, everyone needs to agree on the profit waterfall.

Additionally, this was a high-rise concrete-frame construction — a specialist build methodology that not all lenders are comfortable monitoring. The construction programme was 24 months, meaning significant interest costs and market risk over the build period.

The Section 106 obligations included affordable housing, adding further complexity to the sales strategy and cashflow modelling.

We structured the capital stack in three layers, underpinned by a comprehensive development appraisal and cashflow model that we prepared to institutional standard. £24.5m of senior development finance from a specialist lender experienced in high-rise residential. £8.5m of mezzanine finance from a dedicated mezz fund — taking total debt to approximately 87% of costs. The remaining equity came from the developer and a co-investment partner we introduced.

We negotiated the intercreditor agreement between senior and mezzanine lenders, ensuring the drawdown mechanics worked for both parties. We structured the mezzanine to roll up interest (avoiding any cashflow burden during construction) and negotiated a profit share arrangement with the equity partner that rewarded the developer for outperformance. The quality of our appraisal, business plan and presentation gave all parties the confidence to commit — and secured competitive pricing across every layer.

The entire package was presented as one coordinated proposal — all parties signed simultaneously.

Construction is progressing on programme. The tower has reached the 10th floor with completion expected on schedule. Off-plan sales have exceeded expectations, with over 60% of private units reserved at values above the original appraisal assumptions.

The developer's effective equity contribution was reduced to approximately 13% of total costs — maximising their return on capital employed while maintaining a healthy profit margin. The coordinated capital stack saved approximately £400k in aggregate arrangement fees compared to sourcing each layer independently.