The £14m permitted development project was supported by a total debt package of £7.47m, with Aldermore providing senior debt of £6.12m and Iron Bridge £1.35m of mezzanine to property developers Brickmort Developments in order to refinance and develop the site.
Brickmort Developments was advised by Sirius, which sourced the senior and mezzanine debt on the deal.
The team faced challenges during the process when it came to obtaining vacant possession because there was an existing tenant who was still within their rights in the Landlord and Tenant Act.
The site, Four Oaks House, is a three-storey modern office building which has permission under Permitted Development for conversion into 77 residential units.
Brickmort obtained planning permission from Birmingham City Council for the erection of a side extension and one new floor comprising 13 flats.
The development is expected to be completed in July 2021.
Sirius co-founder, Nicholas Christofi (pictured), said: “This was a very complex deal for a client with whom we have worked for more than five years. The property was tenanted by a global company and so we needed to make sure we worked with the most appropriate lenders, with expertise around the potential legal risks.
“Using a combination of Aldermore and Iron Bridge, we were able to deliver a very attractive debt package for the borrowers to enable them to carry out the development of a key site in Sutton Coldfield.”
Keir Morris, property development manager, from Aldermore Bank, added: “Thanks to the collaborative approach of Sirius, Iron Bridge and our legal advisors, we were able to get our client the funding they were looking for.”
Funding 365 delivers £1.1m loan to complete auction purchase
Funding 365 has delivered an unregulated bridging loan at 0.59 per cent a month to enable a borrower to complete an auction purchase of a house in North London.
The rate applies for the whole term, plus the lender’s standard two per cent arrangement fee, and valuation and legal fees at market rate.
The townhouse property was in good condition and tenanted and the lender provided the fully-serviced nine month loan at 60 per cent LTV.
The team at Funding 365 worked closely with the introducing broker SPF Private Clients to meet the client’s auction deadline.
Funding 365 senior underwriter, Jonathan Brooks, said: “We only advertise interest rates that we’re happy to write, so it’s very satisfying to be able to provide yet another borrower with our 0.59 per cent a month interest rate.
“Thanks to Laura and Nancy at SPF Private Clients for introducing the deal and ensuring a smooth process.”
Laura Toke, broker at SPF Private Clients, said: “Funding 365 only had a few weeks before the contractual completion date and I was really impressed at how quick and professional the team were to get the deal over the line within the auction timeframes.”