Tuscan Capital has announced the funding of a £6.8 million deal for five luxury, multi-unit residential properties in Cheshire.

This transaction, introduced by Arc & Co, was completed at 75% LTV.

The purpose of the loan was to repay the existing lender and raise finance to complete another scheme within the developer’s portfolio. Some of the properties were funded pre-practical completion, with multiple exchanges and offers already secured.

The client, an experienced developer active in the region since 2010, faced delays due to supply chain issues and rising material and other costs over the past two years.

Tuscan enabled the developer to refinance the existing lender and gain time to sell the units, providing a tailored financial solution.

Colin Sanders, CEO at Tuscan Capital, said: “Our product range has allowed us to compete across a broad range of deals this year. Our development exit proposition has been used to particularly good effect with many developers needing to recalibrate their funding structure.

“By refinancing senior development debt and investor’s equity or Mezz, our development exit bridge provides the time required for developers to maximise the sales of the finished product without being penalised by an overdue capital stack. This deal is a perfect example, which given the quality of the finish and its location has already proved to be in high demand and is likely to sell well above valuation.”

Cameron Hayes, director at Arc & Co, added: “Despite a recovering sales market and the relative stabilisation of the issues which have plagued developers for the last few years, there remain clients who need to refinance or consolidate their debt on projects or portfolios that have been impacted. It’s vital to have the support of commercially-minded lenders like Tuscan, who are willing to provide higher leverage to borrowers that require it.

“We are there for our clients throughout the various market cycles, and Tuscan have proven to be a funding partner who align with that commitment.”