Pivot has provided a £6.6m development facility for a 13-home scheme in Kent after refinancing an existing bridging loan it held against the site.
The 20-month facility, agreed at 70% loan-to-gross-development-value, will fund construction at Oast Farm in Hever through to practical completion and the sale of the properties.
The transaction allows developer Highbrook to move from land acquisition funding into development finance with the same lender.
The site, close to Edenbridge, contains former agricultural barns which will be demolished to make way for a mix of new homes. Plans also include a small lake within the development.
Highbrook is working with XP Property on development management, while Total Homes has been appointed as contractor.
BRIDGE MOVES INTO DEVELOPMENT FUNDING
Pivot originally underwrote the land in February and said its existing knowledge of the site, borrower and project team helped it structure the subsequent development facility.
Michael Tarateo, relationship manager at Pivot, says: “I first met Highbrook in person at the open day for their Stonebridge development, which has since gone on to win the RICS South East Residential Development award, and our funding relationship began from there.”
He adds: “Since then, Highbrook’s principal has brought together award-winning partners to build a development model that is both sustainable and robust.
“We are pleased to support Highbrook’s continued growth and look forward to further projects together.”
Stefan Pahontu, senior credit manager at Pivot, says: “Having underwritten the land in February, we already knew the site, the sponsor and part of the team, so we could move quickly when Harry was ready to start construction.
“Rather than applying a generic development model, we structured the facility around how the scheme will actually be delivered and the specific needs of the borrower.”
Strutt & Parker carried out the valuation, with MDA Consulting acting as monitoring surveyor. Dovetail Law advised Pivot, while Stefan Canavan of Willow Isle Capital represented the borrower.
