United Trust Bank (UTB) Structured Property Finance was approached by a repeat business broker assisting a BTR real estate development and management company with a refinance and exit solution.
The borrower was approaching completion of a 40 apartment BTR project set over three adjacent blocks in a popular coastal town. The first block was complete and let whilst the two remaining blocks required around £200,000 to complete the final fixes and decoration before seeking tenants.
The borrower wished to refinance their existing development facility and release some equity from the project. UTB’s Structured Property Finance team proposed a serviced 5-year residential investment loan secured on the completed and let apartment block, and an additional 3-month exit bridge with rolled interest on the remaining incomplete blocks. This £6.35m solution enabled the developers to reduce their finance costs, take some profit from the scheme, and subsequently roll the exit bridge into a similar residential investment loan once the last two blocks were let. The incumbent lender was unable to match the competitive terms offered by UTB, and this, together with the strong broker relationship, sealed the deal.
| Borrower | Developer-Operator |
| Amount | £6.35m |
| Loan Type | Refinance to Investment Loan and; Developer Exit Bridge rolling into additional Investment Loan |
| LTV | 75% |
| Term | 5 Year Term |
| Location | South-West |
| Loan Purpose | Refinance of new build BTR scheme |
| Special Feature | Exit facility offered pre-completion of works and letting |