Pallas Capital has completed a £970,000 development exit loan to support the refinance and sales period for four units at a residential scheme in Kibworth, Leicestershire.
The 12-month bridging facility was agreed at 75% loan-to-value and will refinance an existing development facility while the completed homes are marketed for sale.
The security comprises two bungalows and two apartments, forming part of a 10-unit residential scheme delivered by an experienced local developer.
The transaction was led by Mark Witherington, senior originator at Pallas Capital, and Christopher Adams, underwriter at Pallas Capital. Andrew German at Glovers acted for the lender.
Pallas said the deal required a tailored approach because of the scheme’s security requirements and the borrower’s wider portfolio objectives.
Rather than taking a charge over the full development, the lender worked to ringfence specific units. Pallas said the transaction completed within five weeks following detailed due diligence and work between the legal teams.
Adams says: “This deal is a great example of what can be achieved when maintaining an open dialogue throughout the underwriting process.
“Despite the compressed timeline, we were able to address the more complex aspects of the security structure to meet the client’s requirements. We are happy to see this project reach completion and provide our borrower with the necessary breathing space to refinance and execute their sales strategy.”
Pallas said the completion continues a long-standing relationship between the lender and the borrower. The firm is also exploring a pipeline of future sites with the developer.
