Fiduciam, the bridging and development lender, has provided a £3.62 million loan to assist with both the acquisition and development costs of a conversion scheme in Newark-on-Trent.
The 30-month facility was completed within two weeks of planning permission being granted.
The project involves the conversion of a Victorian mill into 39 flats. The interest rate is 0.65% per month and the Loan to Gross Development Value is 69%.
Anastasia Sachinidou, case manager at Fiduciam, said: “Fiduciam was delighted to provide an emerging developer with a flexible hybrid acquisition-development facility to convert a historic commercial property into much needed new homes.
“The facility fully funds the development works and was completed within two weeks of planning permission being achieved.”
Marc Morris, underwriter at Fiduciam, added: “Emerging developers need tailored cost-effective facilities that meet their unique project and cashflow requirements while conforming to any timing constraints.
“We structured the facility to provide this Midlands-based developer with funds towards the purchase as well as the works, and thus eliminated the need for a costly separate acquisition loan. Other recent cases have integrated a reduced rate development exit phase once practical completion has been achieved.”