Case Study: Farnborough

UK borrower specialising in small scale property development projects.  The client was seeking a refinance loan to repay an expiring development facility, secured on 145 apartments at Thompson House.  Thompson House was a vacant commercial premises, which the borrower was converting into 116 apartments and at the same time adding a new extension to the block to provide another 29 apartments.  At the time, the conversion works were complete, but the newly created extension was a few months away from PC.

Structure

Loan / LTV facility of £19,5m v GDV of 30.1m / LTV 65% 

Loan 1 – Sales Period for Completed Units

Loan 2 – Dev Facility for Part Completed Units 

The above loans were cross collateralised and when the part completed units reached PC the two loans were restructured into 1 sales period facility, which incorporated a rate reduction from the development facility.