Residential redevelopment, Surrey
A stretched senior development facility that carried an office-to-residential conversion from groundworks to 46 completed homes.
A stretched senior development facility that carried an office-to-residential conversion from groundworks to 46 completed homes.
£12m
Stretched senior facility
70%
Loan-to-GDV
24 months
Term
46
New homes delivered
A regional developer secured planning to convert a redundant office campus in Surrey into 46 family homes. The scheme stacked up well, but the developer's equity was tied up in two other sites nearing completion.
A conventional senior facility would have left a funding gap that mezzanine debt would fill only at a price that threatened the scheme's viability. The developer needed one facility, one set of security, and a lender comfortable getting deeper into the capital stack.
We provided a £12m stretched senior facility at 70% of gross development value — removing the need for mezzanine altogether and leaving the developer's remaining equity requirement within reach.
Drawdowns were staged against a monitoring surveyor's certification, with our construction director visiting the site monthly. When a utilities connection delay threatened the programme mid-build, we agreed a revised drawdown schedule within a week rather than forcing a formal variation.
The scheme reached practical completion on the revised programme, with 60% of the homes pre-sold off-plan and the remainder selling through completion.
The facility was repaid from sales within the original 24-month term. The developer has since returned for funding on their next site.
One facility instead of three, and a lender whose construction team actually understood the build. It removed a whole layer of complexity and cost.
Case study shown for illustrative purposes.
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