£7.91m Bridging Loan for a Development Project

A broker reached out for a property developer client. The client purchased an old working men's club in 2018, with the goal to complete a full re-build. The developer had ambitions to build and impressive 6 storey block of 36 luxury apartments, with a ground floor commercial unit.

Development finance had successfully been obtained, and the repayment date to settle the initial funding was fast approaching. Covid caused supplier delays, slowing the project's progress. As a result, buildings warranties and regulatory approvals weren't complete in time, preventing unit sales. Without these, the lender refused to extend funding to finish the work. A short-term solution was required for the client to avoid any late repayment charges from the initial lender. That's where we stepped in.

Within 4 weeks we had secured a short-term bridging loan of the full amount required, £7.91m. The client was able to repay the development loan within the agreed timescales, avoiding repayment penalties. Most importantly, a valuable time extension meant the pressure was eased in selling the units.