Pallas Capital has completed a £6.1 million development loan to fund the construction of a £11 million GDV mixed-use scheme in Northampton.
The 24-month facility, structured at 57% LTGDV, will finance the ground-up development of 60 residential flats and two ground-floor commercial units.
The borrower is an experienced developer with a track record of delivering apartment schemes and plans to retain the completed development as a long-term investment, refinancing onto buy-to-let finance following completion.
Pallas Capital says Northampton’s position as a growth centre, together with its transport connections, is supporting demand for new homes and build-to-rent developments. The lender has experience of financing projects in the area and is looking to support further development in the region.
Mark Witherington (main picture), senior originator at Pallas Capital, and underwriter Jamie Peacham led the transaction. The deal was introduced by Matt Usher of Usher Commercial Solutions.
The transaction included a number of legal and technical issues, including party wall awards, rights of light considerations and vendor-related requirements. Usher worked with Pallas Capital to address the issues before completion.
Witherington says: “I’ve spent the last 28 years lending in and around Northampton, and while the town has changed hugely in that time, I’ve backed a good number of genuine new-build schemes around the town centre over the years, most of them delivered through the redevelopment of brownfield sites.
“We’re proud to be backing the delivery of new homes and supporting developers in the area, showing true understanding of the regional metrics and understanding its potential.”
Professional advisers on the transaction included valuer Neil Allison, monitoring surveyor Samier Alnaggar of TSA Riley and Juliet Baboolal of gunnercooke on the legal work.
