Creon's Strategy
Strategy
The Directors believe that the market for the provision of equity finance for small and medium sized residential developers is poorly served by existing source, which are often expensive or of an informal and uncertain nature. Consequently, the Directors believe that an opportunity exists for Creon to provide mezzanine level finance to developers, providing an attractive level of return within an acceptable level of risk.
Creon tend to focus on unit values typically of between £150,000 and £350,000. At this level the Directors currently perceive the market risks to be significantly lower than those for properties in a higher price range.
Creon's approach is to maximise the return on its funds, at the same time as minimising its exposure to uncontrollable risks. The preference, therefore, is to provide finance on projects that can be completed within 18 months from acquisition of the site and for the residential development to appeal to a large pool of potential purchasers. The Directors also seek to spread the available funds across a range of developments.
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