Shawbrook Bank has provided a £4.5 million development finance facility to Arc X Developments. This funding is for a residential scheme on a former stone quarry site in Combe Down, approximately 2.5 kilometres from Bath city centre.
The 21-month facility will cover both the land acquisition and the construction of six detached homes on the woodland site. The project has an expected gross development value of approximately £6.75 million.
The financing was structured at up to 85% loan-to-cost, with day-one funding to support cash flow and deposit payments. The term includes 15 months for construction and six months for sales.
Arc X Developments, which has experience across Bath and Somerset, required financing that could accommodate unusual arrangements around the land acquisition. This transaction reflects ongoing activity in the development finance sector, with lenders adapting terms for projects with non-standard structures.
The Combe Down site is a brownfield redevelopment in an area with strong housing demand. This project adds to residential development activity in the Bath and Somerset region, despite broader market pressures.