Following the successful conversion of offices under permitted development rights to form 9 apartments, UTB was asked by our borrower if we would consider a further scheme involving a joint venture with their contractor. The project will create 26 units, also under permitted development rights, in a south London suburb. Following a visit to the site and due diligence on the contractor, we were able to agree a facility of £3.7m to assist with the purchase of the site at 65% of its purchase price plus 100% of the build costs, interest and fees which equated to 60% of the GDV.
The borrower’s contractor then asked if we would fund them directly for a 30 unit permitted development rights scheme in a good Kent town. Within a couple of days we were able to offer them a facility of £2.9m to assist with the purchase of the site at 55% of its purchase price plus 100% of the build costs, interest and fees which equated to 60% of the Gross development value.
Total connected exposure is £6.6m secured across 2 sites with a total Gross Development Value of £11.1m, thus 60%. Work is scheduled to be complete well before May 2016.
Development Loan 1 = £3.7m
Development Loan 2 = £2.9m