The facility was provided at a 12-month term with a day one LTC of 75% for an SPV to fund the off-market purchase of The Hendon pub, ahead of planning approval.

The borrower required certainty of funding within a tight timeframe and was committed to completing the acquisition before the planning decision had been issued.

Subject to planning approval, the scheme will see the demolition of the existing building and the delivery of a modern pub and 76 co-living apartments with dedicated co-working space for residents.

The development will range from three to five storeys and will have a GDV of approximately £25m once complete.

Daniel Carlisle, senior director of UTB’s property development team, met on site with the SPV’s principals just two weeks before the target completion date to discuss their requirements.

A proposal was prepared swiftly and progressed through the bank’s credit approval process the following week, enabling funds to be advanced in time to complete the purchase.

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Planning approval, subject to Section 106, has since been achieved and discussions are now underway for UTB to provide development finance to support delivery of the scheme.

SPV member Bernard Margulies, director at BMR Property Group, commented: “The success of this transaction was dependent on achieving a quick turnaround.

“I am delighted with how swiftly Daniel and the UTB team appraised and understood what we required and subsequently set about delivering the funding to complete the acquisition on time. I look forward to working with UTB again in the future.”

Daniel said: “In challenging markets, finding and securing off-market opportunities with the potential for planning gain can give experienced developers an important advantage.

“However, acquiring sites ahead of planning approval is not without risk and many lenders are understandably cautious.

“In this case, we were pleased to support a new customer with a time-critical acquisition and look forward to continuing the relationship as the project progresses into development.”