Hilco Real Estate Finance (HREF) has provided a £5.1m development exit bridging loan to Somerton Construction Limited for a development of nine high-specification residential properties in Somerton, Somerset.
The 12-month loan, secured at a 75% loan-to-value (LTV) rate, comes as the developer reached practical completion but faced the need for additional time to market and sell the units due to delays and increased costs, largely attributed to Covid.
Sean Adams, managing director of HREF, commented on the deal: “We were pleased to assist the borrowers who have developed nine high-quality units on this attractive, historical site… Our ability to provide the required LTV on very competitive terms, and our experience closing similar transactions enabled this loan to complete smoothly.”
Adams further explained HREF’s approach to lending: “As is often the case, they are a strong business with a viable project which happens to fall outside the strict criteria of many traditional lenders.
“Fortunately, as a group of experienced finance professionals, we were able to take the time to understand the business and this particular project, and to provide the flexible lending facility they needed.”
The loan deal was facilitated with the support of law firm Clarion and real estate services provider Savills.
