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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 them and add 6 more units through an extension.
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, clearing it in full. From that point, the client only needed to cover the working capital to get the building works started. The total build cost was £735,000, with £248,000 released on day one to begin the project.
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 moved onto the development loan without having to fund the gap themselves. The result is a 23 flat seafront scheme in Blackpool now in progress, with plans for 6 further units to follow as part of the next phase.
If you have a refurbishment or conversion project that needs finance to move between stages, get in touch.
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