<
p>Development lender Regentsmead has completed a £1.275 million loan on a site with a £2.9 million GDV.
Two weeks ago, B&C spent the day with Regentsmead around Birmingham which included a tour of a few development sites and a lunch in which the £1.275 million deal was signed between James Bloom, CEO of Regentsmead, and developer Romford Homes.
Talks over the loan lasted a few weeks and B&C visited the site with Regentsmead and Romford Homes and his broker before the deal was completed.
The GDV of the properties is £2.6 million and the value of the land is valued around £750,000.
Romford Homes told B&C: “We began negotiations with three landowners about two years ago now, who all had decent back gardens next to one another, which we identified would be ideal for redevelopment.
“We went into an option agreement and subsequently had planning permission accepted. The deal encompassed us taking over a bungalow with its garden and the two neighbouring gardens.
“We’ll be demolishing the bungalow, which is land hungry, and will be creating a new build home with a central road at the front of the development. The site in Wythall is 0.8 acres big and will house six properties in total, including the front property.
“The building costs will add up to around £1.3 million and we’re looking to start the build in January.”
James Bloom, Chief Executive of Regentsmead, said: “We are very pleased to have agreed another facility for Romford Homes on a site in Wythall. The project consists of six detached houses situated in a prime suburb of Birmingham. Romford Homes have shown on previous projects their ability to deliver a very high specification house and this project will be no different. We are providing a total facility in the sum of £1.275 million for construction costs which will be utilised in phases given the number of units.
“The site is very well located and the specification will be very high to reflect the average selling price of circa £500,000.”
The completion process was quick and smooth and really emphasised the strength of the relationship that has been created between Regentsmead and Romford Homes.
Regentsmead has recently extended its maximum loan size to £2 million and has declared a real appetite at deals at 50 per cent GDV.
The development lender has also announced that its 0.75 per cent Exclusive Product rate is to be rolled out on a permanent basis after an initial trial period.
Development lender Regentsmead has completed a £1.275 million loan on a site with a £2.6 million GDV.
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