United Trust Bank were approached by a new customer and asked to consider assisting in the acquisition and redevelopment of an ex-public house site in a Shropshire town.
The site already had planning consent for 14 dwellings but the clients had worked up a revised scheme for 22 units which had been supported by the local authority in a pre-application meeting. The scheme is a mixture of 12 one a two bedroom apartments and 10 three bedroom houses less than a mile from the town centre. A pre-condition for us progressing was that the 22 unit scheme had to have full planning approval.
The client is an SPV joint venture between a developer and contractor where the principals are very experienced in acquisition and development management. The chosen contractor is a well-established associated company of the JV partners with a strong national presence, similar project experience and an excellent track record. The completed units will be also be offered with a 10 year building warranty
These will be modestly priced homes with wide market appeal offered with a 10 year building warranty. Situated so closely to the comprehensive and expanding facilities of the town centre, we expect this development to be popular with local buyers.
Loan – £1.745m
GDV – £3.22m