• Loan Type: Senior Development Loan
• Purpose: To provide senior development financing for the construction of a surf park
• Term: 30 months (18 months construction and 12 months stabilisation, with extension options)
• Special Feature: Flexible term to accommodate the project’s unique needs and a significant fund guarantee

Background: The opportunity involves providing £31m gross senior development financing for constructing a surf park which had been under consideration for several months. The development includes a 15-acre site with planning permission. The surf park will feature a man-made split lagoon, utilising wave-creating technology to provide consistent, high-quality waves year-round. Additional facilities will include 700 sqm of food and beverage outlets, 150 sqm of retail space, and 500 sqm of other amenities.

The Challenge: The project required a significant amount of senior funding to cover 65% of the loan-to-cost ratio, with the remaining costs covered by equity. The original project founder has rolled a significant equity stake into the project. The complexity of the surf park’s construction, combined with the need for expert management and a solid financial structure, posed a significant challenge.

Maslow Capital’s Solution: Maslow Capital structured a £25m net development loan, providing the necessary senior funding while ensuring financial stability through a significant fund guarantee from the equity provider. The loan term includes 18 months for construction and 12 months for stabilisation, with options for extension. Maslow Capital’s involvement ensured that the project received expert advice and oversight, mitigating risks associated with the unique asset class and operational challenges.

By providing comprehensive financial solutions and leveraging our expertise, Maslow Capital enabled the successful progression of the surf park project, ensuring its long-term viability and growth potential.