Development finance brokerage Mackenzie Byrne has completed on a \u00a32.28m facility to fund six new family homes in Whitstable, Kent.<\/p>\n
The 18-month term \u00a31.77m development loan \u2014 provided by HTB at 65% LTGDV and 5.1% over the lender\u2019s standard variable rate \u2014 will allow Mackenzie Byrne\u2019s client, Aspire Designer Homes, to fully fund the building of the six homes, which comprise phase one of a larger scheme.<\/p>\n
HTB has also provided a \u00a3503,000 bridging loan against the land for phase two with an LTV of 49%.<\/p>\n
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\u2019s margins tighter than phase two.<\/p>\n
Aspire will exit the facility with the sale of the units on the open market.<\/p>\n
Joshua O\u2019Leary, director of development and structured finance at Mackenzie Byrne (pictured above), said: \u201cIn a volatile market, our client took an understandably cautious approach to this project, preferring to build it out in two phases.<\/p>\n
\u201cThe 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.<\/p>\n
\u201cWe appreciated HTB\u2019s 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.\u201d<\/p>\n
Christopher Wills, MD at Aspire, added: \u201cWe 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.\u201d<\/p>\n