Omni Capital has announced the launch of a high-end development product for London and the South East. 

Aimed at experienced professionals active in high-end residential property projects in London and South East England, the lender’s latest offering provides flexible funding options for a range of development scenarios.

Omni Capital said it takes a bespoke approach to each funding proposal and has published the following outline lending criteria for guidance:

•    Minimum loan - £5 million;
•    Maximum term – 48 months (depending on construction term);
•    Funding up to 100 per cent of costs; or 70 per cent of GDV;
•    Day One developer equity to cover deposit/fees;
•    Personal Guarantees required;
•    Buoyant/liquid locations in London and the South East;
•    No planning risk taken by the lender;
•    Experienced/professional developers only; and
•    Multiple-unit projects preferred.

Omni Capital said it will provide a swift in-principle lending decision and indicative pricing on receipt of the following:

•    A high-level executive summary of the project;
•    Scheme area and number of residential units;
•    Exit value assumptions;
•    Cost assumptions; and
•    Development and sale programme.

Colin Sanders, CEO of Omni Capital, said: “Throughout 2013 we gauged from our contacts in the residential property sector a significant and growing interest in alternative sources of development funding.

“In response,” he continued, “we made good use of the final quarter to pilot with a small team of brokers adept at handling development funding proposals a soft-launch version of the new product. The results were highly encouraging, and taught us – and our partners – some valuable lessons in this area of highly-nuanced lending.”

He observed: “Being frank, this product is unlikely to be suitable for the majority of finance brokers or smaller-scale developers. It is designed with a specific community in mind, and will be used accordingly. However, it has already stimulated much interest and serves to underpin our continuing belief in the strength, and inherent value, of the London and the south-east residential property market.”

Omni Capital’s announcement follows news of its recent completion of a record-breaking £127.5 million bridging facility for the purchase and development of an iconic central London property close to Buckingham Palace.

In the past week, the lender has completed a £25 million development loan for a prime property in Knightsbridge, London; and in late 2013 provided a £15 million development and restoration funding package for an historic property in Surrey.