Bridging Finance Solutions is backing a large-scale redevelopment of a 10,500sq ft former kiln in Yorkshire with planning for conversion into seven residential dwellings, by providing £1.32 million development funding.
The client, a group of experienced developer/contractors, had bought the substantial three-storey former joinery at auction for £290,000, with plans to transform the space into five terraced town houses, two apartments and workspace.
Set in a rural location in the centre of the village of Tockwith, some 10 miles to the west of York, the client approached broker Phil Mabb of Bridgedevelopment Property Finance to help source funding.
Mabb said: “Having worked with these guys and some of their partners in the past and knew that they had the skills and drive to complete the project, however, their equity in the scheme dramatically outweighed the funds needed to build out.
“I recognised that there was only a handful of development finance specialists that would take a holistic and indeed personal view of both the project and the people, and make that independent decision in terms of potential funding.”
Staff at Bridging Finance Solutions made a series of site visits and client meetings to gaining a clear understanding of the build, transaction structure and associated costs. From this, a financial plan was devised, and following a period of due diligence, funding to cover the build/development cost was confirmed.
Mabb added: “This really was a collaborative team effort. There was strong communication between all parties and a will to make it work. Funding has now been secured at a LtGDV many lenders would have shied away from, and the first of a dozen drawdowns has been taken, enabling work to begin on site.”
Rachel Davies of Bridging Finance Solutions said: “Development finance is a particularly strong area for us – our team has a huge level of understanding around this part of the building industry and the complexities surrounding it.
“Whilst there is certain criteria that we must meet before we can lend, as an independent business, we are able to take a broader view on the scheme and the clients. We recognise the potential of the project and look forward to working with the client throughout the remainder of the programme and seeing this building transformed into a series of wonderful new homes.”