Providing Finance for a Residential Development in East London
An experienced development company approached us to secure funding for a ground-up construction project in East London. The scheme involved creating high-quality apartments across two modern blocks, some of which were designated as affordable housing. With planning fully approved and all pre-commencement conditions discharged, the site was cleared and ready for works to begin. The client needed a facility that would refinance existing loans and provide the capital required to deliver the development.
Contact AlignHow We Helped: Structuring a Bespoke Solution
We worked closely with the client and their professional team to structure a bespoke solution. The facility was agreed at £12+ million, representing 65% of the Gross Development Value. The loan was divided into three tranches: a property tranche to refinance the site, a development tranche to fund construction costs, and an interest tranche to cover projected interest during the build. The term was set at twenty-eight months, allowing seventeen months for construction and additional time for refinance or sales. The exit strategy combined the sale of part of the scheme with refinancing the remaining units for long-term investment.
Our role extended beyond arranging finance. We coordinated with the lender, monitoring surveyors, and legal teams to ensure a smooth process and timely drawdowns aligned with the construction schedule. We also liaised with existing parties who had an interest in the site. This collaborative approach provided the client with certainty and flexibility, enabling them to commence works without delay.
Outcome
The development is now fully funded and construction is underway, paving the way for a high-quality residential scheme that will enhance the local area and strengthen the client’s investment portfolio. Upon completion, the client plans to sell part of the scheme and refinance the remaining units, securing long-term rental income and future growth. Reflecting on the experience, the client described working with us as “absolutely amazing,” praising the team’s professionalism, responsiveness, and ability to navigate a complex refinance with care and expertise.