- What is Strata?
- What is the decision making process for new loans?
- What type of developments are suitable for consideration by Strata?
- Does a proposed development need planning permission?
- What is the term of a typical Strata loan and how is interest charged?
- Does Strata provide loans for schemes outside the South of England?
- Do shareholders receive a Dividend?
- What is the timescale for a shareholding in Strata?
- Can I request a share withdrawal?
- What communications are there to shareholders?
- Can I buy shares in Strata now?
What is Strata?
Strata is a stand alone business that has been created for the sole purpose of providing mezzanine funding to experienced developers with appropriate residential development schemes in the South of England. Mezzanine finance is used to fill the gap between a developer’s equity and the senior debt provided by a bank and is secured on a second charge basis. Back to Top
What is the decision making process for new loans?
All new loan opportunities are reviewed in detail by the Board. When a new loan opportunity is presented, the key aspects are checked to ensure the project meets Strata’s strict criteria. In the event it does, meetings take place with the developer, the site is visited and the financial viability of the scheme is analysed before indicative Heads of Terms are issued. Detailed information is collated in order for due diligence to be completed and for formal approval to be granted by the Board. Once given, lawyers are instructed and close liaison is undertaken with the borrower, senior debt lender and all professionals involved to ensure matter proceed expediently to completion of the transaction.
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What type of developments are suitable for consideration by Strata?
Strata operates to provide funding for residential developments located in the South of England. Typically, projects will have a total development cost of c£2.5m and upwards and will demonstrate a healthy profit on cost. Back to Top
Does a proposed development need planning permission?
Strata only lends on schemes with detailed planning permission already granted. However, Strata can provide an in principle offer of funding for deals that are conditional on planning being in place at the time of land purchase. Back to Top
What is the term of a typical Strata loan and how is interest charged?
All Strata loans are for a period of twelve months with interest charged on a fixed rate basis. Loans can be repaid at any time, subject only to a minimum of six months interest being charged. If repayment is made after six months from drawdown, interest is only charged for the length of time that the loan has been outstanding. Back to Top
Does Strata provide loans for schemes outside the South of England?
No, Strata requires all loans be in the South of England. Back to Top
Do shareholders receive a Dividend?
There are two classes of shares. A shares are for income and growth and pay a Dividend. Anticipated dividends are 7.25% per annum for ‘A’ shares (based on a £1.00 Share). Capital growth only ‘C’ shares do not receive a dividend. Back to Top
What is the timescale for a shareholding in Strata?
Please contact Strata on 020 7259 1029. The company is currently open for new shareholders. Back to Top
When can I request a share withdrawal?
Shareholders may request a withdrawal, in full or part, on a quarterly basis. Full information is available from Gallium and is included in the Information Memorandum. Back to Top
What communications are there to shareholders?
Trading Statements are sent to shareholders bi-annually. These statements and other Strata literature are available to existing shareholders via the My Investment section of this website (please contact Strata for the password). Back to Top
Can I buy shares in Strata now?
Yes, the Company is open to new shareholder on the 1st January, 1st April, 1st July and 1st October each year. New shareholders need to satisfy certain criteria. Please contact Strata on email@example.com or, to talk to a human, call 020 7259 1029 for details. Back to Top