UTB helps developer acquire next door site
Developers with considerable experience in Central London already owned a part residential part commercial building with no debt. This was the rump of a previous portfolio break up transaction. Planning permission had been obtained to add a further floor and convert the building to ground floor retail with 8 flats above. Whilst they wished to carry out this development an opportunity presented itself to purchase the next door building, currently 5 flats with ground floor retail. This property offered the possiblity of obtaining planning consent to increase the density to 8 flats.
UTB were able to provide a facility to fully fund this purchase, the development of the first property and subject to grant of a suitable planning consent, the re-development of the second property. With some uncertainty due to the need to obtain planning permission post completion, we had to analyse and consider a number of alternative scenarios.
Initial LTV 50%, On completion Loan to GDV 50%