Tuscan Capital has completed a £1.765 million development exit facility for a Grade II-listed former pub which has been converted into 25 flats.
Introduced via property finance advisers, Merryoaks Property Finance, Tuscan have been able to offer the exit facility over a 12-month term, funding the property against the aggregate rather than the block value.
The development in Retford, Nottinghamshire is a mixture of studio, one- and two-bedroom flats and came with a complex borrowing structure, with the borrower entity involving a trust, an Isle of Man company and an overseas Ultimate Beneficial Owner (UBO).
Tuscan were able to work with all parties, accepting the readdress of an existing valuation report with one of its asset managers visiting the site to understand the project. The borrower also had to get retrospective planning before the completion of the Tuscan loan could be agreed.
Earlier this year, Tuscan launched a new-look refurbishment facility as a further addition to its range of property finance products. Through the facility, developers are able to secure funding up to 100% of build costs and 70% of purchase price, with pricing starting at 0.48% per month over Bank Base Rate.
Stephen Palfreeman, associate director at Tuscan Capital, said: “This wasn’t the easiest deal to execute, given the borrowing structure, planning issues and awaiting practical completion sign-off but I am really pleased to complete our first deal with Merryoaks. George was extremely proactive and helpful in managing all the requirements that came with this deal.
“A huge amount of credit should also go to our underwriter on this deal, Jade Lidiard, who was fantastic in helping move this transaction along. Development exit finance is one of our most compelling offerings and we have a strong appetite for these deals. Any broker looking for a competitive development exit proposition, and the ability to work quickly and efficiently with even the most complex of deal structure, should contact Tuscan to see how we can work together.”
George Melling, property finance adviser at Merryoaks Property Finance, added: “Tuscan have an attention to detail that is truly remarkable, along with a common-sense approach which sometimes goes out the window when you are a lender; not with Tuscan. They are a pleasure to deal with and I will be happily recommend them and the team, especially Steve and Jade. I couldn’t be more thrilled with the results we’ve achieved together.”
