United Trust Bank’s (UTB) Property Development team was approached to support the redevelopment of a pair of 5-storey semi-detached Victorian villas in a sought-after area of North London. The attractive properties were originally converted into 19 flats many years ago and over time, and several tenancies, they had become tired and dated.
Although the borrower planned to reduce the number of flats from 19 to 16, the improved layouts and access combined with a complete high specification renovation was projected to almost double the value of the final units to just over £15m once the remodelling was completed.
The principals have an in-house design and construction team allowing them to control each stage of the project from concept to the delivery of the highly specified apartments. With a proven track record of successfully delivering redevelopments of older buildings across the London area, UTB was able to agree a satisfactory security structure working with a trusted mezzanine finance partner to provide the £9.125m senior facility required to capitalise the project costs through the acquisition, construction and sales phases.
|Loan Type||Development Finance|
|Loan Purpose||Acquisition and redevelopment of two adjoining Victorian villas into 16 high spec apartments|
|Special Feature||New to Bank customer|
Mezzanine lender injecting £1m