Tuscan Capital has completed a £3.7m development exit loan facility for a holiday let scheme in Devon.
An experienced developer obtained planning permission to demolish a former hotel and develop 15 flats on a prime seafront site in Hope Cove, an Area of Outstanding Natural Beauty (AONB) near Salcombe, South Devon.
Ed Wylie of Forecast Finance contacted Tuscan Capital, confident in their ability to work within the client’s tight timeframes.
The security included nine units with restricted holiday let use and a manager’s flat in a newly developed three-storey building overlooking the cove. The development also featured five residential flats, which were not part of the security and were sold off on long leasehold titles.
Tuscan Capital provided a £3.7m gross loan on a property value of £5.4m at a loan-to-value (LTV) of 70%. The funds were used to clear the current development finance facility and pay off the client’s business partner.
Colin Sanders, CEO at Tuscan Capital, said: “This was a particularly interesting deal for Tuscan Capital as the property is a newly developed multi-unit holiday let in a prime location in Devon with spectacular sea views.
“We could see that the business model was viable and that the ultimate exit for our facility was going to be a commercial term re-finance, which was realistic and only a matter of time for the client to establish the revenue streams.
“Our loan enabled the borrower to repay the development facility before its expiry and repay an investor; a ‘win-win’ for all involved.”
Wylie, specialist finance director at Forecast Finance, added: “Forecast Finance was delighted with the service of Tuscan Capital; however, this should come as no surprise.
“When you have an urgent deadline with many moving parts, you need a lender that not only understands the transaction and its complexities but can come up with practical solutions should a hurdle arise.
“The service was brilliant, and all involved in the transaction really pulled it out the bag for the client. A special thanks to Ed Parsons, Andy Reeder, and Dena Thompson.”
