The developer had been given the option to buy the flat to create an enhanced marriage value based on location as well as scope to extend.
The client already had development finance in place as the exit and a positive gross development value of £13m, leaving Century Capital to feel the deal provided diversification to its portfolio.
Nick Hilton, Head of Lending at Century Capital, said a well-known broker had approached him with a deal that he felt fitted in well with the lender’s portfolio.
“Having had a meeting with both broker and client and having seen a number of similar projects undertaken by the client, we were very keen to transact on the deal.
“The option to buy the flat upstairs and the enhanced marriage value helped mitigate risk significantly.
“With an exit already in place via development finance, our six-month term allowed the borrower to finalise planning and build costs.”
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