Our mezzanine facility on Berkeley Square, a 250-unit residential scheme in Salford, Greater Manchester, was repaid in full last week — 19-months from first drawdown.
In a market where development delays have become routine, this scheme reached Practical Completion twelve weeks ahead of schedule. That's testament to the Heaton Group, an experienced developer who planned multiple exit options from day one and executed accordingly.
Berkeley Square is Phase 1 of a 500-unit development in Ordsall, part of the ongoing regeneration of Greater Manchester's inner ring. The scheme comprises 250 apartments across one, two and three-beds, targeting owner-occupiers and the strong local rental market.
The Heaton Group, a family-run developer and contractor with over 50 years' experience, had already committed nearly £6m of equity and secured 65% pre-sales before approaching lenders.
Maslow Capital provided the senior debt. Shojin provided £3.8m of mezzanine finance, taking combined LTGDV to 70.5%. Second charge behind Maslow, interest rolled up.
The key to this deal: we structured the facility to count pre-sales proceeds as equity. Less cash tied up for the developer, same risk coverage for us. It's the kind of flexibility that makes schemes work.
Construction proceeded without incident and sales continued through the build phase. Practical Completion landed October 2025 — three months ahead of programme.
Presale completions flowed through Q4, clearing the senior debt. For the mezzanine, Heaton Group refinanced against the remaining units — a contingency they'd lined up in advance. Our facility was repaid in full, 19 months from first drawdown.
It's a straightforward outcome, but in the context of the last 24 months — where delays and restructurings have become routine — straightforward is exactly what a deal like this should be. Experienced developer, sensible structure, multiple exit routes planned from day one.
Jonathan Self, Director, Origination commented:
"Heaton Group came to us with a clear plan and skin in the game. Their strong pre-sales for Berkeley Square meant we could structure something that worked for both sides. With demand for units clearly proven, they kept more cash working in the business and we had the risk coverage we needed."
We're reviewing new enquiries for mezzanine and development facilities. Get in touch: funding@shojin.co.uk