“Does the past have a future?”

“Does the past have a future?”

United Trust Bank has built strong relationships with its developer customers, in some cases dating back decades. Over time, the Bank has supported their growth by funding increasingly larger projects and usually several developments at the same time. As the outlook for the UK economy remains uncertain, the advantages of strong lender-developer relationships are clear as housebuilders continue to seek substantial aggregated funding lines through the ups and downs of the economic cycle.

One such developer approached UTB to fund the conversion and redevelopment of a prominent landmark Grade II listed building in a Welsh coastal town. The building occupied an attractive position adjacent to a golf course and overlooking the bay. The building has seen a variety of uses over the last 150 years but had been vacant in recent times and the site owners had attempted to secure funding to complete the project themselves but found it difficult to find the right finance partner. Having been introduced to UTB’s client they decided a joint venture with the more experienced house builder would be the best way forward.

Once the JV was agreed, our clients used their considerable experience working with period buildings to re-examine the plans and decided to submit a revised scheme to maximise the site’s potential. They successfully obtained permission to create 35 apartments within the existing structure and to build a further 34 new apartments on the adjoining grounds.

As the building had become quite run down, the developer immediately carried out roof repairs and other remedial works in preparation for the substantial re-modelling in addition to agreeing a development funding package to secure the buildings future for many generations to come.

Borrower
  • Developer
Amount
  • £9.7m
Loan Type
  • Development Finance
Location
  • Wales
LTC
  • 71%
Project Type
  • Conversion and new build
  • Phase scheme
  • Funding for phase 1-35 apartments
  • JV between site owner and developer
Special Features
  • Grade II Listed Building
  • Phase 2 is a further 34 new build apartments

 

 



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