A public house redevelopment in North Shields has been salvaged after SDKA completed a £322,000 bridging loan in just two weeks, enabling the borrower to complete works and avoid default.
The borrower, a client of Advanced Funding Solutions (AFS), an appointed representative of Synergy Commercial Finance, faced the collapse of their project after a previous lender withdrew funding at the eleventh hour. With the original bridge facility nearing its term and additional capital needed to finish the scheme, the developer risked being left high and dry.
The scheme comprises the cosmetic refurbishment of a vacant ground-floor pub, three one-bedroom apartments above — intended for long-term rental and Airbnb use — and the completion of a car repair workshop at the rear of the site. Once complete, each element is expected to be income generating within 90 days.
Chris Adlam of AFS approached SDKA for a rapid solution. The lender completed the deal within two working weeks, including a readdress of a recent valuation to minimise further delays and costs. The facility was offered at 70% loan-to-value on SDKA’s semi-commercial product, at a flat rate of 1.10% over a 12-month term.
In a move designed to support the borrower’s cashflow, SDKA retained interest for the first three months of the loan. The borrower intends to exit via refinance against an anticipated uplift in the property’s value to £535,000.
Chris Adlam said: “SDKA was quick to understand the project and the applicant’s vision, after which they used every possible avenue to ensure the funds were released right on-time. What impressed me most was their customer-first approach which was central to a timely completion from day one.”
Kunal Mehta (pictured), managing director of SDKA, added: “At the outset it was clear this was a well-executed project which had run into problems that were completely outside the developer’s control. In bridging we know that trust is everything and that is something we deliver by the barrel full.”
