Case Study: Equinox Luton and Inspired Witham

The borrower was working with a group of investors to profitably carry out property development projects.  The client was seeking a refinance loan to repay an expiring development facility secured on two developments. One scheme consisted of 98 newly completed apartments and the second consisted of 66 newly developed but part completed apartments.  At the point of introduction, the Witham site had reached PC but the Luton site was only part complete, with decorative & snagging still to be finished.

Structure

Loan / LTV - We agreed funding of c. £19m v GDV £28m / LTV 68% 

Loan 1 – Sales Period for Completed Units

Loan 2 – Dev Facility for Part Completed Units 

The above loans were cross collateralised and when Luton reached PC, the facility was restructured to a sale period loan, reducing the rate. The rate then reduced further with sales.