The Client
An experienced property developer based in West Yorkshire with a strong track record of delivering residential schemes across the region. The client had completed seven similar projects over the previous eight years with a consistent record of on-time completion and strong sales performance.
The Challenge
Partway through the planning process for a 14-unit residential development, the clients existing development finance lender announced its withdrawal from the market. With planning permission in hand and a site ready to commence, the client needed to move quickly. The client required GBP2.8m representing 68% of the gross development value.
The ABL Solution
ABLs development finance team immediately identified three lenders with an active appetite for this type of scheme. We prepared a comprehensive information memorandum covering the site appraisal, planning consent, build programme, comparable sales evidence and the clients track record.
Within 72 hours we had received two indicative terms. The facility was structured as follows:
- Loan amount: GBP2.8m
- LTV against GDV: 68%
- Rate: 0.89% per month
- Arrangement fee: 1.5%
- Term: 18 months
- Drawdown: staged against build programme
The Outcome
The facility completed within four weeks of ABLs initial instruction. The scheme completed on time and all 14 units sold within three months of practical completion at prices in line with the original appraisal.
ABL moved incredibly fast when we needed them most. Their knowledge of the development finance market meant they knew exactly which lenders would have an appetite for our scheme. - Client, West Yorkshire