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Case Study Property

100% Development Finance

Part one

Two-week £3.5 million bridging loan

Our client had exchanged on a plot of land close to the main station in Luton having secured planning for a ground-up development of 88 units.

Two weeks prior to completion our client's investors pulled out, leaving our client in immediate need of finance in order to proceed with the purchase

The Solution

We sourced a bridging loan of £3.5 million within two weeks, enabling our client to proceed with the purchase of the land.

Part two

£12.5 Million Development loan, 100% finance for first-time time developer

Once our client had purchased the land, we sought to refinance the bridging loan as quickly as possible to a longer term, more affordable product.

This was a complex case that required specialist knowledge. There was a restriction on title in place on the site and the conclusion of the deal was complicated by the fact the client had negotiated an overage payment with the site vendor and a share of the development value with the outgoing bridge provider. Adding to this, although our client had property experience this was their first development project.

The Solution

We secured a development finance facility totaling £12.5 million which covered 100% of development costs - unprecedented for a first-time developer. We sourced a lender willing to lend against an enhanced valuation from planning gain achieving 100% purchase price.

The facility involved a combination of senior and mezzanine finance, providing £3.5 million to repay the initial bridge and a further £9 million for the development.


The Result

By navigating the complexities of the case on behalf of our client with the lender and their legal teams, we were able to secure both a short and long-term solution which enabled the client to progress with a development of 88 units with a GDV of £27 million.

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