Hampshire Trust Bank (HTB) has agreed a £3.6m development finance facility to support the delivery of 21 new homes in the North East.
It marks the latest phase in a residential scheme aimed at first-time buyers, local homeowners and second movers.
The funding will allow an experienced regional housebuilder to complete the second phase of the site, which already has full planning permission in place. All homes will be delivered on a freehold basis.
The first phase, also backed by HTB, has already been completed and sold.
The transaction was introduced and brokered by Mark Nixon of Finance 55, who continues to work closely with the developer. As part of the deal, HTB restructured its existing land facility to accommodate the new funding, updating the land valuation on remaining plots to ensure the facility complied with internal policy while offering flexibility to the borrower.
Russell Higgins (pictured), lending manager at HTB, said the bank’s involvement in the earlier phase gave it a detailed understanding of both the borrower and the project.
“Having supported the first phase of this site, we were already familiar with the location, the borrower and the professional team involved,” he said.
“That background allowed us to structure this next facility efficiently and in a way that complemented the existing land funding.
“It is a good example of how continuity and experience can help move projects forward with confidence.”
PHASE THREE
The bank has also approved a facility for the third phase of the scheme, which is expected to bring a further 23 homes to the area.
Mark Nixon, managing director at Finance 55, described the collaboration as “a pleasure,” noting HTB’s consistency in delivery. “Working with HTB continues to be a positive experience – their team brings a consistent, pragmatic approach that helps get deals done efficiently and with confidence,” he said.
Neil Leitch, managing director of development finance at HTB, said the lender’s regional model and long-standing involvement in the scheme had contributed to the successful outcome.
“Having supported the site from its early stages, we were already familiar with the planning structure, the delivery approach and the wider objectives behind the scheme,” he said.
“That understanding allowed us to provide a facility that complemented the land funding already in place and supported the borrower’s next phase of delivery.”
“Our lending directors are based regionally, which gives us the local context we need to assess risk properly and structure funding that works in practice. It’s that combination of continuity and local insight that helped this project move forward, and we’re pleased to be supporting the next phase.”
