Our clients negotiated a fantastic purchase price to acquire this soon to be vacant 68,000 sqft office block, sat on the edge of a business park in Hook, Hampshire.
Their intension was to apply for Permitted Development Rights (a form of planning permission) to convert to residential apartments, however, at the time of purchase the property was classed a commercial. We gained the support of a lender to provide £6m towards the purchase on a six month term, which allowed enough time to gain the consent and then arrange the development finance.
Planning was secured to create 107 apartments and we secured a development facility totalling £12.8m, which would complete the scheme. As the development progressed, our borrowers applied for additional planning for more apartments on the roof and were rewarded with an additional 14. This would increase their return significantly, but add time, which we negotiated with the lender.
Whilst sales were achieved consistently, a development such as this needs time to return full retail value and towards the end of the development term, we moved the funding to a development exit product, adding valuable time to enable the full £25m GDV was achieved.
We were proud to be involved in every stage of this scheme and our clients went on to create hundreds more well needed residential properties across the South West.