The loan was agreed at 70% LTV and was used to clear the current development finance facility and pay off the client’s business partner.
The deal was brought to Tuscan Capital by Ed Wylie, specialist finance director at Forecast Finance.
The security consisted of nine units with restricted holiday let use, as well as a manager’s flat.
The development also included five residential flats which did not form part of the security and were sold off on long leasehold titles.
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Colin Sanders, CEO at Tuscan Capital, commented: “This was a particularly interesting deal for us as the property is a newly developed multi-unit holiday let in a prime location in Devon with spectacular sea views.
“We could see that the business model was viable and that the ultimate exit for our facility was going to be a commercial term refinance — realistic and it’s only a matter of time for the client to establish the revenue streams.”
Ed added: “When you have an urgent deadline with many moving parts, you need a lender that not only understands the transaction and its complexities but can come up with practical solutions should a hurdle arise.”
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