Pivot agrees funding package for the development of 7 townhouses at 70% LTGDV in South West London
Mitcham, South West London
GDV £4.24M LTGDV 69.98% UNITS 7 DEAL DURATION 18 MONTHS
Mitcham, South West London
We were pleased to support with the acquisition of a site with planning for 7 houses in Mitcham and will be facilitating the construction phase of the scheme, with a £2.96m ground up development facility.
We were comfortable providing a stretched senior development facility at 70% LTGDV, having assessed the housing stock levels and associated liquidity in the area. The borrower had previously been denied funding at the required leverage by another lender, but we gained comfort with the transaction and the fact that the construction risk was being managed through the use of the same frame supplier as an adjacent scheme.
Working to a tight completion deadline, we provided an initial land loan to acquire the site, with a set of conditions to be satisfied before the drawdown of the development facility. To do so, we had to facilitate the addition of a new valuer to our panel.
Further complications arose when it became apparent the funding structure required a portion of mezzanine finance to be introduced days before completion, a requirement that was incorporated seamlessly to enable the borrower to acquire the site in time.
Works are due to commence imminently with a proposed completion in Q3 2023.
Deal Team
Relationship Manager: Vishal Dixit, Pivot
Credit Manager: Matt Rodgers, Pivot
Legal: Mark Greenhalgh (Real Estate Finance) and Sarah McFarland (Construction), Fieldfisher
Valuation: The Bowen Partnership
Project monitoring: Watts Group
Vishal Dixit, Head of Business Development at Pivot, said:
“This is a great example of Pivot offering a stretched development facility to support an experienced developer create much needed family homes in a desirable enclave of Greater London. We had the borrower’s goal at the forefront of our approach, providing flex around using a valuer not on the panel and seamlessly incorporating the mezzanine component days before completion.”
Alex Kyriacou, Managing Director at Funding Advisory:
"After being let down by another funder during exchange of contracts, our client needed somebody that could move quickly and efficiently. We engaged PIVOT, who once again pulled out all the stops, often out of hours, to ensure the deal got done. Its never been more important to access decision makers and work with lenders that truly understand the nuances of development finance. PIVOT continue to impress and have quickly become one of our preferred funding partners."
Key transaction highlights
· Delivering a stretched senior facility at 70% LTGDV.
· Providing a time critical facility to acquire the site
· Incorporating last minute complications such as the requirement for mezzanine finance
Contact Vishal Dixit
Tel: +44(0)20 3695 5511
Email: vishal@pivotfinance.co.uk
To discuss an opportunity with our team: Contact us.