This transaction follows the recent launch of Pallas into the UK market and the appointment of Phil Mabb as senior originator.

Led by Anna Thompson, originator at Pallas Capital (pictured above), the 12-month bridging loan was structured at 75% LTV.

The facility enabled the borrower to refinance both first and second charges while completing refurbishment works, with the exit strategy being the sale of the property once finished and fully marketed.

The borrower, a longstanding client of the introducing broker, had encountered unexpected setbacks.

Mid-refurbishment works requested and funded by a buyer left the property stripped back and incomplete.

When that buyer withdrew, the developer was left with an unmarketable asset requiring completion, alongside mounting pressure from a second-charge investor seeking repayment.

During underwriting, a number of previously unknown issues came to light that placed the loan outside standard criteria.

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Pallas structured a stepped rate structure, allowing the loan to proceed at an adjusted pricing level to reflect the additional risk, with a planned reduction in rate once outstanding matters are cleared.

Valuation also presented a challenge. Given the property’s incomplete condition, the current market value was lower than initially expected.

To deliver the required net loan amount, Pallas advanced the facility based on the value upon completion of works, introducing deadlines for works and marketing to protect the exit.

Special recognition is given to Matthew Stayt, partner at Seddons, who was instrumental in driving the deal to completion.

The loan was funding from Pallas’ own capital lines.

Anna commented: “This transaction is a strong example of how a well-structured bridging facility can provide stability in challenging circumstances.

“From the outset, we understood the borrower needed more than capital — they needed certainty, speed and a partner willing to work through complexity.

“By maintaining transparent communication and taking a pragmatic underwriting approach, we were able to structure a solution that addressed immediate pressures while supporting a clear path to exit.”