Together finances project delayed by COVID
Specialist lender Together has provided a £7.9 million bridging loan for the development of a six storey block of luxury apartments.
The developer purchased an old working men’s club in 2018, with the intention of demolishing it and building an impressive block of 36 high-end apartments with a ground floor commercial unit.
However, the development ran into problems such as building supplier hold-ups after the pandemic hit, delaying the scheme.
The building warranty and required regulatory approvals were not signed off in time, so some units could not be sold, and as a result, the initial lender refused to extend the original facility to complete the work.
They approached specialist distributor Crystal Specialist Finance to find a lender to settle the initial funding, as the deadline was fast approaching.
Crystal brought the case to Together, which agreed to provide a 12-month unregulated bridging loan of £7.91million.
The finance was delivered in four weeks and, crucially ahead of the developer’s deadline, meaning the project could be completed and the remaining apartments sold.
Sundeep Patel, pictured, Director of Sales at Together said:
“The effects of COVID are still causing issues for many, including shortages of materials and labour, and so we are delighted to have provided the finance needed for this developer to repay their existing lender and finish off this fantastic scheme.
Our trust in our partner Crystal to package the deal to high standards played a large part in our decision to offer finance, and the client’s profile was also a key factor.
We already had good knowledge of the site too, and so knew that this was a good opportunity for all parties.”
Jason Berry, Group Sales and Marketing Director at Crystal said:
“Our client was placed in a stressful situation, which could have resulted in severe financial implications.
Together was able to turn around the entire loan in just four weeks from application to completion, ensuring that the project could be completed successfully.
From the start, Together took an extremely pragmatic lending approach, clearly laying out the terms of the loan and the timescales to which they would deliver – everything was simple and straightforward.”