Sirius Property Finance has sourced joint funding for a £14m GDV permitted development scheme in Sutton Coldfield, with senior debt from Aldermore Bank and mezzanine finance provided by Iron Bridge Finance.

The £14m project was supported by a total debt package of £7.47m, with Aldermore providing senior debt of £6.12m and Iron Bridge £1.35m of mezzanine to Brickmort Developments Ltd in order to refinance and develop the site.

Brickmort Developments Ltd were advised by Sirius, which was mandated to source both the senior and mezzanine debt on the deal.

There were significant challenges, particularly in relation to obtaining vacant possession due to an existing tenant being inside the Landlord and Tenant Act.

Nicholas Christofi, Sirius co-founder, said: “This was a very complex deal for a client with whom we have worked for more than five years. The property was tenanted by a global company and so we needed to make sure we worked with the most appropriate lenders, with expertise around the potential legal risks.

“Using a combination of both Aldermore and Iron Bridge, we were able to deliver a very attractive debt package for the borrowers to enable them to carry out the development of a key site in Sutton Coldfield. The key to this deal was the relationship between all parties and the desire for us all to deliver a funding package to suit the client as well as the lenders.”

Greg Tarn (pictured), associate director – credit at Iron Bridge Finance, added: “At Iron Bridge, we pride ourselves in finding solutions to problems, and this case was no exception. Closing this deal with like-minded partners was immensely satisfying and we are delighted to able support this scheme.”

Keir Morris, property development manager at Aldermore Bank, said: “We’re pleased to be able to provide funding for this scheme given some complex challenges surrounding the legal title of the property. Thanks to the collaborative approach of all parties, including Sirius, Iron Bridge and our legal advisors, we were able to get our client the funding they were looking for. It’s a great example of how complex deals can still be done within development finance.”