UTB funds £10.9m redevelopment following pub’s last orders
United Trust Bank was approached by an experienced London based property developer who has owned an ex-public house since 2007. Since buying the property they have worked up a scheme with the help of their professional team to redevelop the site to provide a single block of 36 new build private apartments and 4000 sq ft of commercial floor space. The development will comprise 13 x one bed units, 20 x two bed units and 3 x 3 bed units together with 28 underground car parking spaces.
Planning consent was granted in November 2010 but the developer delayed starting the project until they were confident that the market for the finished product was sufficiently strong. There is no social housing on site but the developers agreed to a £600,000 Section 106 payment which is payable at key stages throughout the development. The client has also employed a third party contractor to work alongside their already experienced team.
United Trust Bank is providing a facility of nearly £6m for a term of 18 months incorporating a small land loan along with a construction facility. The GDV is £10.91m representing an LTV of 55%