What was the situation?
In 2018, we completed on short-term funding on a large office building in Newcastle which did not have any planning permission. The client secured a planning uplift for 322 units and was looking to flip the site based on the planning uplift.
What was the issue?
This was a large site where we had to work off a three phased strategy to reduce the risk and required high leverage. This was a step up in project size for the new developer and the developer was also going construction manage the project – due to the step up in development size, this restricted options.
What was the process?
Through my close relationship with clients, I knew this opportunity would be suitable for a specific developer who we put in place to purchase site. After sourcing the site for the new developer, I then arranged finance for the purchase; a true cradle to grave experience. The new developer then reworked the planning between exchange and a deferred completion.
What was the solution?
We put together a deal which worked well for both vendor and purchaser which meant the vendor got the maximum return they were looking for and the purchaser could minimise the equity contribution they would need to make and resulting in an exceptionally high expected return on investment. Both parties were extremely happy with the outcome and although there were challenges, through high communication levels and tenacity we found a solution to each potential problem.
Lending solutions with LDN Finance
Are you looking to secure development finance for a new or existing project? At LDN Finance, our expert brokers have a wealth of experience in securing commercial development finance, working closely with our trusted network of private banks and specialist lenders to arrange bespoke funding solutions to suit your circumstances at competitive, market-leading rates.
Get in touch with us today to organise an initial consultation.