Pallas Capital has completed a £2,021,500 development facility to refinance existing debt and fund the construction of a 16-unit assisted living scheme in Wallington.
The 16-month loan was structured at 65% LTGDV and will support both the refinance of the existing borrowing and the ground-up development of the scheme.
The borrower is an experienced residential developer with an established track record in delivering housing projects, although this is its first move into the assisted living sector. Pallas Capital said the scheme would be refinanced onto a term loan once works are complete.
The deal was led by Mark Witherington, senior originator at Pallas Capital, and introduced by Miles Wallace of The Commercial Branch, who has a longstanding relationship with Witherington.
Pallas said the transaction required close coordination between the parties involved and that its experience in the assisted living market helped it to structure the facility around the borrower’s development timetable and intended exit.
The lender also said the facility was increased following a reassessment of costs during the transaction.
Professional advisers on the deal included Robert Hutchins of AWH as valuer, Ruaidhri Mulligan of TSA Riley as monitoring surveyor, and Danielle Fewtrell of Brechers on legal work.
Witherington (pictured) says: “This transaction demonstrates our willingness to support experienced developers moving into new asset classes where the fundamentals of the project are strong and the sponsor has a proven delivery track record.
“Assisted living is a growing sector with strong demand, and our experience in this space allowed us to structure a facility that worked for both the borrower and the project.
“Despite some delays outside everyone’s control, the transaction progressed well overall and we were pleased to support an increase in the facility following a reassessment of costs.
“At Pallas Capital, we focus on building long-term relationships with both brokers and borrowers, and this deal is another example of how we work collaboratively to deliver funding solutions for development projects.”
The lender said it would continue to support the borrower through the development period ahead of the anticipated refinance and stabilisation of the scheme.
