SDKA has completed a £200,000 commercial bridging loan into a Small Self-Administered Scheme pension fund to help finance the final stages of a Grade II listed redevelopment in Leicester.
The specialist lender provided the eight-month facility to support the conversion of a former school site into six detached office units.
The historic buildings had stood vacant for around 20 years before redevelopment work began. Having already committed substantial personal funds to the project, the developer required additional capital to complete the scheme.
A refinance application with a major high street bank had stalled because the lender was only prepared to value the three completed office units, with planning permissions on parts of the wider development still outstanding.
SDKA agreed to lend against the entire site, with a fourth unit nearing completion, allowing the borrower to secure the funding required to progress the project.
As the funds were being advanced directly into a Small Self-Administered Scheme (SSAS), the transaction required trustee consent and extensive legal due diligence. SDKA worked with pension trustees and legal advisers to review the trust structure and associated documentation. Andrew Carmichael of Ratio Law provided legal oversight.
The loan completed within 15 working days and was agreed at a rate of 1.1% per month. The borrower intends to exit the facility through a future refinance.
Kunal Mehta, managing director of SDKA, says: “Despite the complexities associated with a Grade II listed redevelopment, the pension fund borrowing structure and commercial asset class, our team moved swiftly from application to completion to ensure no delays in the redevelopment process.
“To assess all of the associated details and release the funds in only 15 days highlights our expertise in structuring commercial bridging finance solutions and supporting borrowers through complex lending scenarios where traditional funding routes may prove problematic.”
