Development finance brokerage Mackenzie Byrne has completed on a £2.28m facility to fund six new family homes in Whitstable, Kent.
The 18-month term £1.77m development loan — provided by HTB at 65% LTGDV and 5.1% over the lender’s standard variable rate — will allow Mackenzie Byrne’s client, Aspire Designer Homes, to fully fund the building of the six homes, which comprise phase one of a larger scheme.
HTB has also provided a £503,000 bridging loan against the land for phase two with an LTV of 49%.
Structuring the facility as both a development loan and a bridge will allow Aspire to its development in two phases, as infrastructure requirements make phase one’s margins tighter than phase two.
Aspire will exit the facility with the sale of the units on the open market.
Joshua O’Leary, director of development and structured finance at Mackenzie Byrne (pictured above), said: “In a volatile market, our client took an understandably cautious approach to this project, preferring to build it out in two phases.
“The margins on phase one were too tight to fund it as a standalone project, so we worked with HTB to secure a bridge against the land for phase two, providing enough funding to build out phase one first.
“We appreciated HTB’s determination to work towards a solution and are delighted to have secured an equity release for our client as part of the facility, which will allow them to pursue other projects.”
Christopher Wills, MD at Aspire, added: “We were pleased to have Mackenzie Byrne on board to assist navigating through the deal and structuring the right leverage to ensure sufficient funds are available for the project.”
Published by Development Finance Today on 21st July 2023