- Client: UK SPV
- Gross Development Value: Circa £14 million
- Loan Amount: Circa £9 million
- Location: Northern Ireland
- Development: 80+ serviced apartments
Enness was approached by a UK SPV seeking development finance for a prime site in Northern Ireland. The project involved the construction of more than 80 serviced apartments, with the demolition and preliminary works already completed before Enness became involved.
The borrowers required funding for the remaining build-to-finish stage of the development, including the associated finance costs. Given the scale of the project and its location, finding a lender with the appetite and experience to support the scheme was an important part of the process.
Planning considerations added further complexity to the transaction. The development involved planning matters that required specialist legal input, including consideration by King’s Counsel. This meant the lender needed to be comfortable with both the development itself and the associated planning position before progressing with the facility.
Enness reviewed the project and approached suitable specialist lenders with an appetite for larger development transactions. We successfully structured and negotiated a circa £9 million development facility with a lender able to accommodate the requirements of the project and its remaining construction works.
The application took slightly longer than initially anticipated due to the complexities involved. Throughout the process, Enness maintained regular communication with the borrower and the other parties involved, providing clear updates and highlighting meaningful progress as the transaction moved through underwriting and the associated legal work.
The circa £9 million facility provided the funding required to progress the development towards completion. With a projected gross development value of approximately £14 million, the financing gave the borrowers the opportunity to continue the construction of the serviced apartment scheme while working through the remaining development requirements.
This case highlights the importance of selecting a lender that understands both the commercial requirements of a development and the specific considerations that can arise within a particular jurisdiction. Development finance can be structured around the characteristics of the project, including its stage of construction, projected value, planning position and funding requirements.
Enness works with a range of lenders across the development finance market and can assess funding requirements for residential, commercial and mixed-use schemes. Where a project involves complex planning matters or a specialist location, careful lender selection can be particularly important.
If you are looking to finance a property development or refinance an existing project, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Development finance is subject to status, valuation, planning, underwriting and lender criteria. Projected gross development values are estimates and are not guaranteed. Property values and development costs can change, and borrowers should obtain appropriate professional advice before proceeding with development finance.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
