Pallas Capital has completed a £525,000 bridge-to-refurbishment facility to support the acquisition and redevelopment of a residential property in North London.
The 12-month loan was structured at 75% loan-to-value and will enable the borrower to secure a lease extension and carry out a programme of internal refurbishment works.
The property currently has 47 years remaining on its lease. The refurbishment is intended to improve the asset and support its long-term viability in an area where high-quality residential stock remains in limited supply.
The transaction was led by Anna Thompson at Pallas Capital, who worked with the borrower to manage changing deal circumstances and deliver funding within a tight completion deadline.
The lender said the facility was funded entirely from its own balance sheet, allowing it to respond quickly when the structure of the transaction changed during the purchase process.
Following delays involving third parties and valuation requirements, the developer used their own funds to complete the purchase within the contractual deadline. Pallas Capital subsequently restructured the facility from a purchase bridge into a refinance transaction within the 10-day completion window.
Anna Thompson (pictured), bridging originator at Pallas Capital, says: “When unexpected third-party delays compressed the completion timeline, our priority was to step in pragmatically and give these experienced developers absolute certainty.
“By utilizing our own internal funding lines, we were able to restructure the entire facility into a refinance bridge within days, ensuring the asset was protected.”
The transaction was introduced by broker James Lockyer, who worked alongside the parties involved to help complete the lease extension and refurbishment funding package.
