Case study: £17 million development loan for office scheme

A version of this piece originally appeared in Property Week. This deal was supported by our specialist, Structured Property Finance team. See the types of deals they can fund here.

LendInvest has provided a £17m development loan to finance a 30,000 sq ft office scheme in Cambridge.

The loan was provided at a 64% loan-to-gross-development value ratio.

The scheme, which has a gross development value of £26.5m, is already under way and has been pre-sold to an unnamed REIT. It is phase two of a wider development of the site and includes converting warehouses to offices and building new warehouse-style offices.

LendInvest funded the developer’s acquisition of the site with a short-term bridging loan, giving it time to work up a planning application.

Tom Madden, director of structured property nance at LendInvest, said: “It was great to deliver a funding package for a repeat client that we have supported on numerous sites over the years, including pre-construction bridging, development nance and development exit loans across both residential and commercial schemes.

“With a fantastic location, close to Cambridge station and the continued strong demand for office and research facilities in the city feeding life sciences, technology and business services companies, we were really keen to assist our client when they acquired the site. We were even more delighted to offer them a competitive construction loan to build this second phase of the project.”

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