Loan amount: £1.3 million
Purpose: Purchasing a commercial site while they explored planning for residential
A new borrower, introduced by a valued broker partner, needed funding for the purchase of a development site in Bristol.
They wanted to convert the property into a residential led scheme, and needed the maximum funds to minimise their cash input while they funded planning costs.
Previous discussions for a scheme of 54 units had been challenged, so the client pursued a reduced 31-unit scheme, which the Council had reacted to more positively.
With a planning date in Q2 of 2022, we backed the borrower with the funding they needed to secure the property while they worked on full approval.
Despite no planning in place, we saw the potential in the project, which had a GDV of between £10m and £11m, and our borrower’s ambition to provide much-needed, high-quality housing for the area.
Michael Minnie, Business Development Manager in the Structured Property Finance team, explained more about the deal: “We are grateful for the introduction of this deal by Tom Lee, Managing Director at Pure Structured Finance where we were able to exceed expectations and achieve 85% of the purchase price.
“Pre-planning bridging deals are a product we pride ourselves in. Subsequent to the loan completing we have also agreed in principle to release further funds once planning has been achieved.”