Brokerage expands on self-funded lending proposition

Brokerage expands on self-funded lending proposition




For expanding finance providers, obtaining a direct line of consistent funding can be the key to sustained growth and future opportunities. For brokerage-cum-lender Davon, it provided.

For expanding finance providers, obtaining a direct line of consistent funding can be the key to sustained growth and future opportunities. For brokerage-cum-lender Davon, it provided a chance to offer tailored funding solutions to its customers. B&C spoke to Daniel Norman, Business Development Executive at the firm, to find out how the lender can create such unique funding solutions…


B&C: How did Davon begin and arrive at where it is today?

DN: Davon’s Principal has been in the property finance industry for 25 years and has always focused on the structuring of funding for property projects. Through that period Davon has successfully structured all forms of funding for a wide variety of projects, with a focus throughout on residential development transactions.
 
How is your team structured at Davon? In order to successfully deal with a range of finance, do you have personnel with a number of different specialisms?

We are a professional and experienced team within which we have specific knowledge of a wide range of project types and funding solutions. This allows us to ensure the most appropriate form of funding is put in place for each client and their requirements.

Having worked for so many years with a wide range of third party lenders and investors, Davon has in more recent times become a principle provider of mezzanine finance through both its Strata Fund and its own investment vehicle, Davon Capital. The expertise that exists within the company continues to allow Davon to structure all forms of funding to include senior debt, mezzanine, bridging and equity/joint ventures for appropriate projects.

What other types of finance does Davon provide?

The focus of Devon’s expertise remains in structured funding for residential development projects across the south of the UK. However, we regularly assist clients with a broader range of funding to facilitate investment acquisitions (both residential and commercial) and other property-based requirements, including student housing, mixed-use schemes and leisure properties.
 
How does Davon work as both a brokerage and a lender?

The brokerage aspect of the Davon business complements our direct lending as it allows us to ensure that the complete financing package required by clients can be put in place as one seamless structure.
 
Could you tell us some more about the Strata Fund – how did the relationship start, and from where did the fund originate?

Strata Fund is the result of our desire to have funds available for the provision of mezzanine finance and is effectively a joint venture between Davon and Evolve Fund Services, which already operates a number of commercial property funds. We have substantial funds available and are able to provide mezzanine facilities through Strata totalling from £250,000 to £2.5 million.
 
Similarly, could you tell us about Davon Capital? 

Funding available through Davon Capital comes from our own funds combined with a selected number of private investors with whom we co-invest. The focus of lending through Davon Capital is also for mezzanine finance but with the added ability to consider other forms of lending on a flexible basis for appropriate schemes.

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