OSB Group has provided a £25.9 million refinancing facility for a mixed-use development in Manchester, enabling the borrower to repay an existing development lender and complete outstanding commercial works.
The transaction relates to Barclay House, which comprises 93 apartments and basement commercial accommodation. The residential element had reached practical completion, but the developer required short-term funding while preparing the remainder of the scheme for occupation.
The facility was agreed at 75% loan-to-value (LTV), with the borrower intending to establish rental income before pursuing a sale or longer-term refinance.
OSB Group completed the transaction 21 days after issuing its formal offer, with funds released little more than a month after the initial referral.
TIGHT REFINANCING DEADLINE
The developer faced a deadline to repay its existing funder while commercial fit-out works remained outstanding.
OSB Group’s high net worth and specialist property team worked with the borrower and professional advisers to assess the development and structure the refinancing.
A site visit took place shortly after the initial enquiry, allowing the lender to establish the requirements for credit approval and progress the application within the available timeframe.
The lending decision took account of the developer’s experience and the strength of Manchester’s rental market.
Adrian Moloney, group lending distribution director at OSB Group, says: “This was a substantial transaction with a challenging timeframe, but by engaging with the borrower at an early stage and visiting the site within days of the initial enquiry, our teams were able to build a clear understanding of both the asset and the client’s objectives.
“The strength of the development, the borrower’s track record and the resilience of the Manchester rental market gave us confidence in the case, allowing us to deliver a solution in just over a month from first enquiry.”
Aris Shanti, partner at A&M Investment Office, adds: “The client needed a lender that could move quickly and take a pragmatic view of a complex refinance while parts of the scheme were still being finalised.
“Although this was our first transaction with OSB Group, the team engaged early, worked collaboratively with the professional advisers and maintained clear communication throughout the process.
“Completing a £25.9 million transaction in this timeframe helped the client meet a critical deadline and move forward with their plans for the development.”
