Recognise Bank has completed a £2m bridging loan on a derelict commercial site in Sheffield, helping the borrower unlock funds for a series of new development projects.

The site, a mix of disused warehouses and offices on a greenbelt and brownfield location, was subject to planning approval for eight luxury homes. The property presented a number of challenges, including asbestos contamination and the risk of subsidence caused by historical mineral extraction.

Funding was structured in two stages – pre- and post-planning approval – to cover demolition and site preparation costs. The final loan totalled £2.043m, provided at 60% loan-to-value on a 12-month term.

The deal was introduced by Ryan Dixon of GSB Capital Limited, a new broker partner for Recognise Bank.

Heather Mitchell (pictured), lending manager at Recognise Bank, said: “The complexity of this case would have defeated many lenders. However, Ryan at GSB Capital provided a very well packaged case and understood what information we needed up-front to help us make a swift decision.

“The experience of the borrower was key in agreeing this deal too, as with other projects in the pipeline, it was clear what their plans were and how this funding would enable them to fund these future projects.”

Ryan Dixon, managing partner at GSB Capital Limited, added: “Our client needed to find a lender who would not only make a quick decision, but one that could grasp and fully understand the risks surrounding the wait for planning.

“This was whilst also recognising the positives and upsides of the deal, which ultimately mitigated these risks.

“The team at Recognise Bank did all this and enabled the funding to quickly happen with little fuss. As a first-time broker to the bank, their efficiency and knowledge gives me immense confidence when I undoubtedly introduce my next deal to them.”