United Trust Bank was approached by a new to bank customer to assist with funding the acquisition of a former public house with substantial redevelopment potential.
The borrower had negotiated the off-market purchase and required a quick bridging facility of £3.7m towards the acquisition, VAT and associated fees and charges.
A pending planning decision, if successful, would allow the demolition of the existing building and creation of a modern public house and 76 high quality co-living apartments together with co-working space for the residents. This will be a graduated scheme from 3 to 5 storeys. The borrowers had already undertaken extensive discussions with the borough council’s planning team and received positive responses. However, the borrowers were committed to completing their purchase before the planning decision was given.
A member of the UTB team met with the developers on the site 2 weeks before completion was due. With the completion date looming, a proposal was quickly but diligently prepared and put before the Bank’s Credit Committee the following week where approval was given to advance the funds required to complete the purchase. Planning approval subject to 106 has since been achieved with discussions soon to be underway for UTB to provide development finance to complete the scheme.
| Borrower | Value-Add Investor-Developer |
| Amount | £3.7m (including VAT loan) Commercial Bridge Facility |
| Loan Type | Commercial Bridge Facility |
| LTGDV | 75% LTC Day 1 Advance |
| Term | 12 month terms |
| Location | North London |
| Loan Purpose | Site acquisition pending planning approval |
| Special Feature | Bridge to develop funding for new customer Heter Iska compliant facility |