United Trust Bank is committed to supporting the SME house building sector. Recently the Bank provided funding to a growing regional house builder for a development of 91 homes on the edge of a popular midlands village.
The house builder was set up five years ago as a subsidiary to a successful family owned civil engineering business. UTB had funded their second development of 28 new homes in 2015 and they were keen to work with UTB on this considerably larger project. The company’s aim is to become an established regional house builder over the next few years.
Recent improvements to the local infrastructure had presented opportunities for investment in new housing and this 9-acre development comprised a mix of 2-4 bedroomed private homes with good access to amenities. Sloping on two sides, the site presented complex challenges in the groundworks. However, the developer contracted the parent civil engineering company which had the necessary skills and experience to overcome the problems and complete the site access and enabling works.
Phase one of the development achieved a strong level of early sales and this prompted the house builder to accelerate their plans for the next phases. Having initially received funding from UTB for the first phase, they returned to the Bank for additional funding and approval was quickly given to increase the facility to £8.25m.
As well as funding the build out of the final phase, UTB has now approved funding to support their acquisition of their next project, a site with planning approval for 150 homes.
|Borrower||Regional house builder|
|Loan Type||Development Finance|