| United Trust Bank (UTB) Property Development was approached to provide an £18.9m development and stabilisation facility to a joint venture (JV) creating 90 co-living apartments, on a redeveloped site in East London. The borrower, a JV comprising an existing UTB developer customer and a real estate investor, had acquired a site with a former care home in situ and had gained planning for its removal and the construction of a three and five storey co-living scheme. They now wished to secure a facility to refinance their original acquisition costs, fund the construction of the development and subsequently move to a 12-month stabilisation loan post completion. The borrower intended to pass the management of the scheme over to a well-established co-living operator, and once fully let with stabilised income of around £2m p.a. they would explore options to sell the development or refinance and retain in an investment portfolio. With due diligence completed, and comfortable that the team in place was suitably experienced to successfully deliver the scheme, UTB agreed the funding package and work commenced to clear the site and start the build. |
| Borrower | Entrepreneurial Developer |
| Amount | £18.9m |
| Loan Type | Development Facility and Stabilisation Loan |
| LTGDV | 83% LTC |
| Term | 12 months |
| Location | East London |
| Loan Purpose | Refinance of original site acquisition, construction costs and stabilisation into the rental period that follows |
| Special Feature | JV between a Developer customer and a Real Estate Investment Manager |