United Trust Bank’s Structured Finance (SF) division is providing a 4.050 million Sales Period Funding facility to a joint venture between two experienced property developers active in the West Midlands. The principals are first time borrowers from UTB, and the facility was agreed and drawn during the Covid-19 lockdown.
The facility was used to settle the remaining development funding provided by another specialist lender and the lower variable interest rate on the new facility has reduced the borrowers’ costs and given them more time to achieve the best sale prices on the remaining 24 apartments of the original 100 unit scheme. Interest is rolled up within the facility and the variable margin reduces as repayments from sales reduce the LTV.
The borrower demonstrated a strong track record of delivering successful, high quality schemes through varying market conditions and evidence of good owner-occupier and investor demand for the remaining apartments. The facility was available to draw within a month of obtaining credit sanction. The borrowers are now in discussion with UTB about funding their next development project.
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