Brightstar and Castle Trust complete £8m development exit

The client built a block of flats using a development finance loan which was due for redemption, but a deal to sell off some of the units to a housing association had been delayed.

There was also an ongoing legal dispute, which needed to be resolved prior to completion on the loan.

Brightstar turned to Castle Trust, which structured the deal as two simultaneous bridging loans ‒ one with interest serviced on a monthly basis, and the other with the interest rolled up. This means the client is able to manage their cash flow until the sales go through.

Rob Jupp (pictured), group CEO of Brightstar Financial, said that the case was an example of how working with the right partner can make a deal which seems impossible completely achievable.

He continued: “Our relationship with the lender meant we were able to work together to structure a loan with a high exposure that took legal charge over the entire development and secured funding on a high loan to value against the block value of the site. This demonstrates the value of great partnerships.”

Barry Searle, managing director of mortgages at Castle Trust, said the case showed the value of working with specialists that understand the market and how to structure solutions.

He added: “The client faced a real problem, but we were able to work together with Brightstar to get them out of a hole and deliver a solution that will help them to achieve a successful result to their development.”