Loan size: £3.2 million
LTV: 65% LTV
Purpose: Development Exit refinance for a client who needed more time to sell after covid delays.
A developer client of ours – who had worked with us on the preconstruction and development part of their project – needed a development exit refinance after delays due to covid prevented the sale of all of the units within the loan term.
The loan requested covered the remaining facility and a capital raise after they had invested their own money into improving the quality and value of the units.
With six of the 13 converted/new-build apartments already sold off plan with the remaining sales expected to be strong coming into the Autumn period, the team was happy to work with this long-standing client to see the successful conclusion of their project.
Structured Property Finance Director Tom Madden, who had worked with this client on over a dozen of occasions in the past four years, explains how we have acted as a one-stop-shop for the developer on this scheme: “We originally helped the client acquire this large dilapidated Victorian building with a 12 month Bridging loan to allow them time to work through design and planning approval.
“On gaining planning for an extension, conversion into additional flats and new build units to the rear we transitioned the loan over to our Development product where our Relationship Director, James Russell and Portfolio Manager, Aaron Cummings oversaw the construction funding to Practical Completion.
“The client opted to transition the development facility over to our Development Exit product to not only provide the comfort of a new 12 month loan term while selling the units down but to also achieve a lower interest rate and a capital raise of over £400,000 to cover additional sunken costs on the scheme and for business cashflow. They can also look to benefit from retention of up to 20% of net sales proceeds on each unit sale for additional working capital.”