£6m refinance and equity release enables a developer to grow

UTUnited Trust Bank’s Structured Finance Team was approached by a broker looking to source a significant funding solution for their client.

The client is a company which develops luxury serviced retirement property complexes, a specialist sector in which one of the principal company directors has more than 20 years’ experience. The other main director is an experienced businessman and majority shareholder in a construction company, as well as having interests in several other businesses.

Having initially established the development company by entering into joint ventures with a well-known, high-end retirement home developer, they began working independently, acquiring and developing their own sites. They have grown rapidly in the last few years and have now completed six of their own luxury retirement schemes for the elderly, have two more developments nearing completion and several others either under construction or in planning.

The team at UTB arranged a face to face client meeting between the directors of the company and three representatives of the Bank’s Structured Finance Team. Here the team was able to discuss the borrower’s needs and gain a better understanding of the company, its future plans and the strengths and depth of experience of its directors and shareholders.

The borrowers wanted to refinance an existing development loan in order to prevent them incurring expensive extension fees and to release equity in order to fund further site acquisitions without constraints. Furthermore they required capital to continue their growth plans. Over the next year they intend to open larger offices and recruit architects, designers, planning consultants, legal and administrative staff.

Head of United Trust Bank’s Structured Finance division, Gerard Morgan Jackson, commented:

“One of the benefits of working with United Trust Bank is the personal approach we take to every structured finance proposal. We meet with every borrower and the skills and experience within the team enable us to quickly appraise their financial situation and put forward a completely bespoke solution which meets their requirements. With a robust and reliable source of funding and a talented and dedicated team, United Trust Bank is fast becoming the first choice provider of structured finance for a growing number of specialist brokers.”

Total facility – Circa £6m.