Case Histories

Residential Development at Canford Cliffs, Poole

We were approached by a developer who owned a plot with planning consent for two detached townhouses with top floor views across Poole Harbour and Brownsea Island. The houses were to be 2,400 square foot each and with a gross development value of £2,400,000.

A nationalised bank had advanced the sum of £780,000 towards the land acquisition but had then reneged on funding the build. A further £600,000 was required in order to complete the project and this was negotiated by us as a loan to be on a second charge which enabled the build to take place, the properties sold, the borrowing redeemed and the profit realised.

Development at Tisbury, Wiltshire

This was an opportunity to build three substantial detached houses with total re-sale being £2,800,000. Our client was an established and highly solvent entity but in spite of this, the High Street banks with which they had relationships were not interested in lending support. We arranged funding of £1,500,000 to enable the land acquisition to be completed and the build to take place. The properties were all sold off plan during the early stages of development.

Development at Denmead, Hampshire

This was a development of seven properties with total re-sale in the region of £1,600,000. The unique achievement here was not that the lending was provided but it was provided in spite of the fact that all High Street and institutional outlets did not want to support the project because the directors of the client company had put a previous company into a CVA (Company Voluntary Arrangement) two years previously. Like many people in a property-related business, they had suffered a company failure in 2008 due to circumstances that were entirely beyond their control.

We arranged a venture capital package to provide £900,000 to enable the build to take place. The deal was at standard Interbank rates and an exit fee was charged on repayment of 3% of the re-sale as the venture capitalists reward for the additional perceived risk.

40-Bed Rest Home, New Forest, Hampshire

We arranged a commercial mortgage on this rest home in rather bizarre circumstances. Ten-years prior to this, the owner had embarked upon an ambitious programme to increase the capacity of the home from a registration of 24 to 40. This involved significant building work which over-ran both on budget and on time. The bank that was involved at the time appointed an LVA Receiver immediately the property was ready to operate at capacity and with full occupancy. Our client embarked upon a legal battle against the mortgagee in possession and won. Following a High Court Judge’s directives, he had the opportunity to buy back a care home worth the best part of £2,000,000 for a sum of £600,000 in full and final settlement to the bank. His question was how could we find him a lender to support a person that had previously failed with his business and been made bankrupt as a result. Suffice to say we did.

14-Bed Hotel, Central Bournemouth

This was a more tricky, rather than spectacular exercise in raising capital where our client was looking to buy the freehold of a hotel which was then subject to a third-party who had the remainder of an 18-year-lease. The freehold value with vacant possession would have been a good deal higher than the £350,000 that our client had agreed to purchase it for had vacant possession been available. However part of the plan was that the tenants in question were the mother and father of our client and they had insolvency issues and would relinquish the lease upon bankruptcy. All the lenders that we approached were unable to provide the finance that was required, however. we were able to effect a bridging loan to complete the purchase whilst the lease was dissolved prior to a longer term refinance.

NEWS

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We have very recently secured access to £10M of private funds, and processed the first loan from this tranche. The transacti ...more