United Trust Bank (UTB) is to finance a development of 14 luxury two and three bedroom apartments and ground floor commercial space being undertaken by developers Harrington Homes.
The three-storey development will be built on the site of the former Harlyn Inn Hotel situated adjacent to the beach on Harlyn Bay in Cornwall.
Specialist debt advisors, Brotherton Real Estate, introduced Harrington Homes to UTB in October 2020 with a short deadline for the purchase of the site, and completion due to take place in early November. With additional challenges presented by Covid -19, it was not possible to undertake a site meeting prior to giving a credit decision within the tight timescales. However, UTB’s Mark Pannell arranged Zoom meetings with Robert Kleinman from Brotherton Real Estate and Harrington Homes’ principals to discuss and agree a suitable funding package.
Although Harrington Homes are new UTB customers, they have extensive development experience and a strong track record of delivering successful, high specification projects around the South West.
Pannell presented the proposal to UTB’s Credit Committee, which is currently meeting daily via video conference, and approval was quickly given to provide the £6.18m required to cover the balance of the site purchase, construction costs, professional fees and CIL / Section 106 obligations. An extended repayment term was agreed to provide Harrington Homes with greater flexibility should the pandemic create disruption to the construction timetable.
Demolition works were underway within two weeks of the completion of the site acquisition and the first apartments should be released for sale around Easter 2021.
Harrington Homes has already received considerable interest in the new properties.
Gareth Hughes, director of Harrington Homes (SW) Ltd, said: “Despite having to overcome some additional challenges created by the pandemic, United Trust Bank and Brotherton Real Estate worked closely to turn around our proposal quickly and enabled us to complete the purchase of the site within a very tight timescale.
“Although we have benefitted from Brotherton’s assistance on several occasions, this is the first development where UTB have provided the funding and I hope this will be the start of a long and mutually beneficial relationship.”
Robert Kleinman, CFO of Brotherton Real Estate, added: “Mark Pannell and the United Trust Bank team pulled out all the stops to provide a quick decision on this deal and have the funds available within around six weeks of our first conversations.
“They’re a pleasure to work with and are always keen to back good developers like Harrington Homes who are providing high quality new homes where there’s demand. I’m very pleased to get another competitive funding deal with UTB over the line and look forward to working together on future deals.”
Pannell said: “Harrington Homes have established a strong reputation for delivering high quality developments and I’m delighted that UTB will be providing the funding to create these superb homes in a stunning location. We had to move quickly on this deal and Brotherton’s involvement was crucial to us getting all the information we needed when we needed it. It was an excellent example of developer, introducer and lender working in unison to meet a challenging deadline.
“With around 40 buyers already showing interest in the apartments, I’m sure this will be another successful development for Harrington Homes and the bank.”