Merryoaks Property Finance has announced the completion of a £5.9m development loan with United Trust Bank (UTB).
The deal was to assist a £9.8m GDV scheme comprising six contemporary units in Essex.
There were a number of issues to overcome, including a 12-month completion period and a developer stepping up from a £1.6m GDV single-unit to a multi-unit scheme.
Despite these challenges, Merryoaks facilitated successful negotiations across all aspects of the deal, including lender agreements, solicitor coordination, JV landowner discussions, tenant eviction, insurance provisions, and valuation negotiations.
Saam Lowni (pictured), founder at Merryoaks said: “This was an exceptionally complex transaction that required strategic problem-solving at every stage. The developer was stepping up from a single-unit (£1.6m GDV) project to a six-unit scheme, significantly increasing both the construction budget and GDV, which made securing lender support challenging.
Throughout the process, we worked closely with United Trust Bank who thanks to their support and flexibility, provided the funding and together, we successfully structured a 12-month deal, enabling the borrower to take this significant next step in their development career.”
Luke Benton-Drury, director – property development, at United Trust Bank, added: “I am delighted that UTB is supporting this exciting scheme, and it has been a pleasure to work with Merryoaks in structuring a solution which enables the customer to step up to a significantly larger project.
“UTB is committed to supporting regional housebuilders as they play an important role in delivering the UK’s stretching new housing targets. We are always keen to consider proposals from experienced and capable housebuilders and recognise that in addition to creating new homes, their activities also provide a significant boost to the national and local economies.”
