Hampshire Trust Bank (HTB) has provided an experienced housebuilder with a £12.9 million facility to complete a major housing development in Derbyshire.
The facility will fund the development of 27 apartments and 42 new build houses on a site in the Amber Valley.
Recognising that the transaction was a complicated one, the broker contacted HTB’s lending director for the Midlands, Mark Witherington, who is based in the area and has extensive knowledge of the local market.
The deal, which completed in November, provided an overall facility for 65% Loan to Gross Development Value and funding for 100% of the borrower’s construction costs, professional fees and interest roll-up.
Witherington (pictured), said: “This is a major development and, as is often the case, there have been a number of changes to the transaction since HTB became involved. We took the time to understand these and work with the borrower to provide an appropriate solution.
“Despite the changes in the interest rate environment since the transaction was initially offered and challenges in the UK housing market generally, HTB was delighted to continue to be able to support the client on the terms we initially proposed.”
Neil Leitch, commercial director – development finance, Hampshire Trust Bank, added: “At Hampshire Trust Bank we have a truly regional strategy with our development finance lending directors actually living in the areas that the cover. When a broker gets in touch with their local HTB contact about a development finance case, our person on the ground will very often be able to be on site that very same morning.
“The lending director is fully aware of how the case is progressing at any given time and has the experience to deal with any issues that may arise by liaising with the relevant specialists.
“This approach is proving to be very successful and never more so than with this case. Despite its complications, made harder by the rapidly worsening economic conditions we witnessed in the autumn, Mark was able to combine his authoritative local knowledge with our underwriting expertise to create a facility which enabled the housebuilder to complete this substantial development.”
