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£1.3m Secured for a 29 Unit Seafront Scheme in Blackpool
Our client, an experienced property developer, was looking to purchase a seafront site in Blackpool. The building already had 23 flats and the plan was to refurbish and reconfigure them into 25 self contained units, targeting young professionals looking for quality accommodation in the town.
The route to get there involved 2 stages of finance, a bridge to secure the site, followed by a development loan to fund the works.
The Problem
The client needed to move fast to secure the site, but the development side of the deal was not yet ready to proceed. The costings and lender requirements still needed to be worked through. A standard development loan would not have allowed them to act in time.
The Solution
We arranged a bridge to give the client time to meet the development requirements. We used the same valuation across both stages, working closely with the lender, QS and valuer to keep the process on track in the background.
The Outcome
The bridge was used first to secure the site. A few months later once the development requirements were in place, the development loan completed and replaced the bridge which cleared it in full. From that point, the client only needed to cover the working capital to get the building works started.
The Results
- Purchase price £340,000
- GDV £1,600,000
- Loan amount £1,317,899
- Build cost £735,000 (net)
- Day one net release £248,000
- Term 12 months
Under time pressure, the client secured the site and worked through the development requirements with our support. They also moved onto the development loan without having to fund the gap themselves.
Work is now underway on Blackpool's promenade, transforming a building that had sat empty for years. The scheme will offer a mix of studio, one and two bedroom apartments, alongside communal working spaces, a laundry facility and a gym, with completion expected by the end of November 2026.
"The developers we support are the saviours of these run down, derelict buildings, bringing them back to life and giving them utility so people can have a safe roof over their heads." Saam Lowni, Founder, Merryoaks Property Finance
If you have a refurbishment or conversion project that needs finance to move between stages, get in touch.
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