RAW Capital Partners has completed a loan worth £5.3 million for a luxury courtyard development, which is valued at £9.5 million.
The Guernsey-based lender and investment management firm’s client owned the land and entered a joint venture with a development company in 2021 to construct 11 premium homes. The development comprises of luxury semi-detached and terraced homes, and features properties with three to four bedrooms, each with gardens and garages.
Initially, the borrower planned to sell ten of the properties, while retaining one for personal use. However, with the original financing set to mature in May 2024 and no renewal option available, the client turned to RAW Capital Partners for a refinancing development exit solution.
Recognising the unique nature of the development, RAW Capital Partners had to call on its extensive panel of valuers to find the appropriate one and instruct them to work swiftly. The valuation highlighted a shortage of high-quality properties of this kind, which indicated that the properties would sell at pace, particularly as some of the properties were already on the market.
As a result, the development exit loan was structured with a short 12-month term to align with the anticipated rapid sales of the properties. The loan was provided at a Loan-to-Value (LTV) ratio of 48.54%. The sale of the assets is the exit strategy for the loan.
Despite the client’s complex income stream, RAW Capital Partners’ bespoke approach to lending ensured that the client accessed the best financial product for their needs and had the breathing space they needed to complete the sales of the properties.
Ben Nichols (pictured), Interim Managing Director at RAW Capital Partners, said: “This case presented some challenges, most notably the tight timeline due to the upcoming maturity of the client’s original financing. However, our team’s expertise and our bespoke approach to lending allowed us to overcome these hurdles speedily and effectively.
“Ultimately, this case underlines the importance of taking into account the full picture of an application. Here, we took into consideration the potential sale value of the 10 properties, as well as the client’s extensive assets and liabilities, and were able to deliver a large loan that met the client’s needs. We’re delighted with the outcome, as is the client.”