United Trust Bank (UTB) Structured Property Finance has completed an £11.4million hybrid Developer Exit and Rent Stabilisation facility for Brighton based Cayuga Homes. The solution refinances their existing development debt and releases equity from the near complete luxury apartment scheme in Hove, East Sussex.
The transaction, which was introduced by Craig Booth of Abbey Capital, enabled Cayuga Homes to sell some of the 33 apartments in the development with no early repayment charges, retain the rest and release some equity.
Established in 2016 by Ed Deedman and Tim Harding, Cayuga Homes is a bespoke property company specialising in the development of residential and commercial properties throughout Sussex. Cayuga are dedicated to delivering enviable living spaces, with a focus on building homes in sought-after seafront and waterside locations and take pride in revitalising and enhancing areas, driven by a strong commitment to the regeneration of commercial and residential property and public space.
The solution provided by UTB was a 24-month, 64% LTV hybrid facility providing a sales period loan of £3.4m and an £8.1m stabilisation loan secured against the 19 apartments Cayuga Developments wished to retain as investments. Typically, many lenders would require the investment units to be let prior to completion. However, to allow the borrower to complete quickly to reduce costs, UTB removed this condition and built in a roll-up element giving the client time to obtain lettings prior to servicing the loan.
Ed Deedman, Co-Founder and Director of Cayuga Homes, commented: “We were looking for a very specific finance facility to suit a unique set of circumstances, and it was refreshing to work with Gerard and the UTB team as they structured a tailored solution which ticked all the boxes.”
Craig Booth, Director of Abbey Capital, commented: “UTB’s Structured Property Finance team are my go-to lender for clients who require bespoke solutions. Gerard’s team worked quickly and diligently to deliver a loan which enabled Ed and Cayuga Homes to implement their strategy. Another job well done!”
Gerard Morgan Jackson, Founder and Sales Director – Structured Property Finance, United Trust Bank, commented: “We were delighted to work with Craig and Ed in structuring a deal delivering exactly what they needed. It was a complex request, with several parties in the capital stack and a desire to complete the loan quickly. At UTB we understand that clients’ needs are often not straightforward and rather than forcing them into a product which doesn’t fully meet their needs, we will try to structure a bespoke solution.”