Deal Type: Property Development (Commercial and Residential)

Loan Amount: £2.7M

Lender: Hampshire Trust Bank (HTB)

Summary:

The client is an established developer that has owned property for 30 years+ and been building to retain commercial property for 10 years.

Originally approached in 2021 to fund a sub £1m commercial development terms were offered but the banks professional fees were deemed too high, and the client had sufficient funds to complete themselves. Happy with the service we gave, the associate kept in touch with them in case they needed funding for the future.

That future turned out to be 2024 when a much larger loan was requested.

The client had put all their monies into the purchase of land and planning at circa £1.2m – they needed around £3.3m to build out a commercial building pre-let to Sainsburys and 12 x flats pre-let to an LDC provider with a GDV of £5.4m. The original bank who had provided terms in 2021 was willing to support but we felt we had a better offer on the table from HTB and although the client explored both options, we were correct and HTB came through with an offer at 10.25%.

Despite a down valuation HTB managed to keep their offer at a level that worked sufficiently for the client and even though HTB could have gone higher based on WRFG arranging a refinance at a higher GDV the client was ultimately content with the initial amended sum offered.

The underwriting and legals were relatively painless and the bank completed within a month of the amended offer being accepted by the client.