Pallas Capital has completed a £3m residential development loan to fund the opening phase of a build-to-sell project in Roch, Pembrokeshire.
The 20-month facility has been structured at 65% LTGDV and will support phase 1a of the scheme, which comprises 10 houses.
The lender said the borrower is an experienced local developer with a strong track record in the area.
The deal was led by senior originator Mark Witherington and underwriter Jamie Peacham, following an introduction from Laurie Baugh at Approved Finance.
Pallas said the transaction involved a complex title and unregistered land, issues that can often delay or prevent funding from progressing.
The lender worked with its legal partners to structure the facility and move the development into the construction phase.
Peacham says: “This deal is a great example of what we can achieve when we lean into the more complex aspects of a transaction. It required a significant amount of thought from our legal partners and a pragmatic, commercial mindset to get it over the line.
“It is always a win to work alongside trusted partners who understand the local market. We are happy to see this project move into the construction phase and look forward to supporting the client further as the site progresses.”
Pallas said it is already in discussions with the developer about funding later phases of the wider scheme.
