Hampshire Trust Bank has completed a £2.4m development finance facility to support a mixed-use scheme in Mitcham, south west London.
The deal, introduced by P10 Financial Group, will fund the delivery of eight residential units alongside two commercial units on a high street site.
The scheme forms part of ongoing local regeneration activity, with demand for well-located, smaller-scale developments continuing to underpin activity in the development finance market.
The project highlights the role of specialist lenders in supporting SME developers navigating complex delivery conditions, particularly where schemes evolve during the build phase.
TAILORED STRUCTURE
The facility required a tailored structure to accommodate a planning gain delay, alongside early-stage challenges around contractor engagement.
Hampshire Trust Bank worked closely with the broker and borrower to adapt the funding as the scheme progressed, ensuring continuity despite delays and shifting project requirements.
The transaction also marks a new borrower relationship for the lender while reinforcing its existing partnership with P10 Financial Group.
The deal was led by Sarah Dix (main picture), lending director at Hampshire Trust Bank, with support from Athens Piponides, Scott Apps and Gemma Pyhpers.
FLEXIBLE APPROACH
Dix says: “This was a transaction that required a flexible approach to both structure and delivery. The project evolved as it progressed, and it was important that the funding reflected those changes while maintaining certainty for the borrower. By working closely with the broker and client, we were able to support the development through those challenges and keep it moving forward.”
Jack Grey, Associate Relationship Manager at P10 Financial Group, adds: “This is a longstanding client relationship, and the project required a lender that understood both the scheme and the client’s objectives from the outset.
“While the development presented challenges, a collaborative approach between lender, adviser and borrower ensured these were worked through and the facility remained aligned to the needs of the scheme. It will be positive to see the site transformed into well-designed apartments and modern commercial space for the Mitcham community.”
PRACTICAL CHALLENGES
Neil Leitch, Managing Director of Development Finance at Hampshire Trust Bank, says: “Smaller-scale developments like this are a key part of how new homes are delivered in established urban areas but they rarely follow a straight path from planning through to delivery.
“Delays, changing requirements and practical challenges on site are part of the reality for SME developers.
“In that environment, having a funding structure that can adapt as a project evolves is critical. Specialist lenders play an important role in supporting these schemes, providing the flexibility and continuity needed to keep developments moving and bring forward regeneration at a local level.”
