- UK client sought a land refinance and development finance deal for a large 550 residential unit scheme with GDV of £235m
- Client has loan track record in land promotion and had recently obtained planning for a site he had been working on for some time
- Site pre-sold subject to planning. Short gap in timescales between land acquired and sold, but client did not wish to place any more capital into the site
- Loan of 70% LTV required, but client did not want to pay excessive fees for the loan
Assets
- Large area of land in Cornwall
Income
- Sale of units when completed
Requirements
- Large area of land in Cornwall
Facility Secured
- £15m land refinance and £10m committed development facility
Positives
- Full land refinance and committed development loan facility secured
- Large refinance drawn before planning approval secured
- Funding quantum secured in line with the clients requirements
Challenges
- Large debt quantum
- Remote location
- Lack of planning
- Long development period of 36 months
The client was looking for an organisation that would not only deliver on the land refinance, but could also provide a committed line for the development funding once the planning process had been approved. A loan period of 35 months was required, given the number of units and the scale of the full development programme.
This was an interesting case, owing to the remote location of the site and the complexity of the land ownership titles. Additionally, the fact that the site had no detailed planning consent added to the intricacy of the mandate.
The funding requirement which in total was £25m added to the list of challenges to overcome, given that this amount significantly exceeded the loan levels offered by most well-known lenders.
Following a thorough review process, which included us turning to our panel of specialist high value development funding in order to secure a funding solution which not only delivered on the land refinance requirements, but also offered the client a committed development funding line once planning approval was completed.
Ed Ogden
Managing Director
I was happy to have secured this funding package for this ground breaking development in Cornwall. We managed to hit the client’s requirements after extensive market research. The clients were delighted with the finance package we secured.