PIVOT funds extensive barn conversion in much sought-after East Sussex
Bexhill, East Sussex
GDV £1.5m LTGDV 64.7% UNITS 3 DEAL DURATION 15 MONTHS
The Opportunity
Pivot’s borrowers identified an opportunity to conduct a sympathetic restoration and conversion of former brick and flint farm buildings, arranged around a courtyard, to create a small development of three highly desirable, three-bedroom homes, comprising two houses and a bungalow.
The development will be located in peaceful countryside on the outskirts of Bexhill, a delightful seaside town with regular, direct trains to London. Cosmopolitan Brighton is 30 miles to the west and historic Tunbridge Wells to the north is under an hour away by car. Ashford with its Eurostar station and direct connection through the Channel Tunnel to France is also under an hour away to the east. An almost perfect location: situated between idyllic, rolling Sussex countryside and an up-market beach resort with plenty of shops and restaurants, and a well-known cultural venue which hosts a variety of shows from music to art exhibitions.
These existing agricultural buildings, although out of use, vacant and somewhat derelict, are still structurally sound and well able to take the loading of the conversion works. As such, Pivot was able to arrange a facility as part of its heavy refurbishment product offering. They provided favorable terms to a project which aims to minimise its impact on the immediate environment.
The Deal
The development opportunity presented an appealing prospect, supporting a local husband and wife team in a major refurbishment which would provide 3 family houses in Bexhill, East Sussex. The developers have experience of bringing similar schemes to fruition, having undertaken similar residential housing schemes over the last 5 years.
Whilst this is the borrowers’ first barn conversion, Pivot gained comfort from the experience of the wider project team and were also able to work collaboratively with the borrowers and their representatives on the most appropriate funding package. Having funded a number of barn conversions, Pivot was also able to demonstrate credibility in assessing the key project risks.
Pivot is providing a land loan to support the purchase of the derelict barn buildings and will then fund 100% of the conversion costs. The facility will be redeemed via a sale of the completed units.
Key Transaction Highlights
· Subject site is part of an expansive (107 hectare) title with various restrictions, all of which Pivot navigated to the satisfaction of all parties.
· Whilst the borrower is experienced in similar scale developments, this is the first scheme of this nature they have delivered themselves.
· Favorable deal terms were offered due to the sustainable nature of the development.
Deal Team
Relationship Manager: Shahil Kotecha, Pivot
Credit Manager: Jay King, Pivot
Legal: Anthony Sultan, Ultimate Law Solicitors
Valuation: Pinders
Project monitoring: Adair
Shahil Kotecha, CEO at Pivot, said:
“Pivot has a mission to support SME housebuilders and we facilitate a wide variety of projects, from single family homes to multi-unit blocks. This was an example of a smaller type of project that we were happy to support, given the developers were perfectly adept at developing high quality residential units in the area.”
Russel Green, Director at Amplify Growth:
“Pivot were extremely and reassuringly thorough in their due diligence, but their investment has enabled us to maintain our ongoing development cash flow. I look forward to a continuing relationship with them as we expand our property portfolio and explore further development opportunities across our local area.”
Our Origination Team
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