The client initially purchased the property without planning permission, and later on obtained change of use and planning approval for the site to be converted into 52 residential apartments.
The borrower required the £8.5m loan to refinance their existing debt used to acquire the vacant property.
The deal posed several challenges, as the school was owned by multiple shareholders and required a guarantee from a director that wasn’t a shareholder.
- New brokerage Elan Property Finance enters market to provide 'friction-free finance'
- LendInvest completes £12.2m worth of deals
- Arc & Co and Century Capital close £3.5m development exit loan
Nevertheless, LendInvest was able to work together with Arc & Co to overcome the difficulties, and was able to provide the loan at 65% LTV over a 12-month term.
The borrower intends to repay the loan by selling the site to a property developer.
Tom Savill, asset finance adviser at Arc & Co, said: “It was great working with LendInvest on this deal — the firm was very competent in understanding the complex nature of the asset, as well as the ownership structure.
“I look forward to working with it again in the future.”
Gary Clark, BDM at LendInvest, added: “This deal had some unique points to it, and with the input and support from Tom, we were able to quickly deal with any issues in a timely manner.
“I would like to thank Tom for his professionalism and support, aiding us to complete this deal in the timescales required.”
Leave a comment