With the 12-month term loan being delivered at 55% LTGDV, the asset will be converted into a mixed-use scheme comprising six residential apartments above a fully refurbished and operational public house.
The security is an end-of-terrace building in the London Borough of Hackney.
The property comprises a vacant public house on the basement and ground floors with the upper floors forming two derelict flats, totalling 4,000 sq ft.
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Planning consent had already been secured for for a rear two-storey extension and mansard roof to allow the creation of six self-contained flats, and the development facility was structured to allow the refit of the commercial ground floor and basement as well.
Albatross was able to structure a single facility covering the refinance, the commercial works and the residential conversion, with tranched drawdowns aligned to the development programme and interest rolled throughout.
The primary exit will be the sale of the six residential flats on completion, with combined proposed sale prices totalling £3.03m with an average value of £500,000.
The borrower intends to refinance the commercial unit onto a commercial term product once the pub is operational.
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