In our latest Deal of the Month, we share how our borrower is making the most of a large plot to maximise their returns.
About the deal
We are pleased to confirm that we have funded a new development in Sussex for an experienced developer, thanks to an introduction by broker Cameron Hayes at Arc and Co.
The borrower was seeking a loan to demolish an existing house and level the site before replacing it with a ground-up development. The new property would be an apartment block consisting of seven apartments with great market potential and a total gross development value (GDV) of more than £4m.
The borrower sought a development loan, for which we requested additional collateral. This was provided in the form of a recently completed project in the same neighbourhood (GDV £4.7m).
The previous project was completed to a very high standard, and 40% of the properties had sold quickly. With clear evidence of sales, a healthy pipeline under offer, developer experience, and the desirable location of both sites, Marc Cantor, Senior Advisor at Phoenix Funding, made the deal with a cross-collateralised approach.
We arranged a ground-up development loan for their new project, as well as a bridge exit facility to repay the existing senior lender on the completed property and provide the developer more time to sell the remaining units.
We closed the bridge exit deal in just 10 days, while simultaneously working on the development loan!
The borrower was extremely happy and is now moving forward with the apartment project, which we can’t wait to see completed.
Looking for finance?
Our UK-based support team offer flexible financing terms and fixed interest rates, with quick decisions. So, if you’re considering a similar project, we’d love to help make it happen. Let’s chat.