Pallas Capital has provided £3.9 million in development finance for a residential scheme located near Market Drayton, Shropshire. This funding package includes refinancing for the completed first phase and construction finance for the second phase.
The 16-month facility is structured with a loan to gross development value of just over 65%. The second phase of the project is expected to bring the total number of units in the scheme to eight.
The financing arrangement involved Pallas Capital restructuring the loan, using the borrower's existing residential portfolio in Stone, Staffordshire, as additional security. The lender also managed the transition from the borrower's previous lender to avoid penalty charges.
Units from the completed first phase are currently being marketed for sale, while construction on the second phase is underway with the support of the Pallas Capital facility.