Fiduciam completes pair of development deals for £2.5m

by:
  • 28/05/2020
  • 0
Fiduciam completes pair of development deals for £2.5m
Fiduciam has completed two development finance loans worth a combined £2.5m in the south of England.

 

The first for £1.6m was located in south London and involved the transfer of equity from one project to another.

The lender said this helped new projects to start earlier, permitting the developer to do more projects in a year and to grow by simply using the same capital more efficiently.

It added that this could become more common as the movement restrictions led to slower sales for completed projects.

“The loan for £1.6m at a loan to value (LTV) of 55 per cent allows the borrower to use equity from a recently completed development to fund their new project,” it said.

“This will enable a shop, storage area, and one flat to be converted into five new flats and a shop.”

The second deal was a £900,000, 18-month term, permitted development multi-drawdown loan for a refurbishment project on the South Coast.

The project will see a 19th century derelict period property, purchased at auction and converted into four separate high-end residences of two and three bedrooms.

The sale of the individual residences provides the exit for the loan.

Fiduciam case manager Marc Morris said: “As Covid-19 slows the sale of completed projects it will also generate attractive opportunities to purchase new sites.

“The possibility of transferring equity from one project to the next will become ever more attractive and Fiduciam expects to see more applications for its Stepping Stone loans over the coming months.”

 

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
Octane Capital hires senior BDM from Shawbrook

Octane Capital has hired two new members to its sales and credit teams.

Close