A pragmatic approach to supporting a growing East Midlands developer
Earlier this year, United Trust Bank was approached by a new introducer to discuss the possibility of funding a developer on a site on the Nottinghamshire / Leicestershire borders.
The client had an extensive civil engineering background and had been undertaking major roadway and ground works contracts, including those for large national house builders. However, to date
the developer had completed just one new build scheme, which was for 6 houses.
The proposed scheme was for 28 houses and represented a much larger undertaking and greater risk to the Bank. However, knowing that the client had hands on experience in delivering major infrastructure projects, this gave us confidence that the developer was capable of undertaking and delivering a scheme of this scale.
The client had commenced work on the site and had the capital in place to fund through to completion. In the meantime they had been offered a further site in the East Midlands with planning
for 90 houses. Subsequently they wanted funding to complete the remaining works at the first site and also an equity release which could be used to help fund the acquisition of the second site. The Bank was offered a charge over both sites.
We were able to assess the quality of work completed on the first site and determined that we were happy to reimburse the customer with £1m which they had already spent. This, with an advance
against the new site, would be sufficient to facilitate the purchase.
United Trust Bank is keen to continue funding good quality developers outside of London and the Home Counties, and with this facility in place the Bank has enabled the client to continue to grow their business in an ever improving East Midlands market.
Facility Limit: £3.75m
GDV: £7.2m (scheme 1 and site value scheme 2)