United Trust Bank (UTB) Structured Property Finance was approached by a returning broker and customer to refinance a development loan with a hybrid sales period and rent stabilisation solution.
The customer, a well-established and successful housebuilder/developer, came to us with a complex request allowing them to sell some units with no early repayment charges, retain the rest and release some equity.
Many lenders would only offer either a sales period loan or an investment facility. At UTB we realise that our clients’ needs are often not straightforward and as opposed to forcing them into a product that doesn’t fully meet their needs, we try to structure something bespoke.
As such, we structured a single hybrid facility providing both a sales period loan of £3.4m, and a £8.1m stabilisation loan, secured on the 19 apartments that the client wanted to retain as investments. Typically, other lenders would require the investment units to be let prior to completion. However, to allow the client to complete quickly to reduce costs, we removed this condition and built in a roll-up element giving the client time to obtain lettings prior to servicing the loan.
| Borrower | Regional Housebuilder/Developer |
| Amount | C £11.4million |
| Loan Type | Hybrid Developer Exit and Rent Stabilisation facility |
| Location | South Coast |
| Term | 24 months |
| Loan Purpose | Refinance of remaining senior development debt Equity release |
| Special Features | Returning customer Equity partner in the capital stack 33 luxury seafront apartments Two funding tranches |