SDKA completed a £322,000 bridging loan in two weeks to help save a developer’s mixed-use public house project in North Shields, Newcastle-Upon-Tyne.
The borrower, a client of Advanced Funding Solutions (AFS), had been left without funding after their original lender pulled out late in the process.
This put the developer at risk of missing the deadline on their existing bridge loan and needing extra funds to finish the work.
The project included refurbishing the ground floor pub, creating three one-bedroom apartments for long-term rental and Airbnb guests, and finishing a car repair workshop on the same site.
Chris Adlam of AFS approached SDKA for funding.
The lender processed the application and released the money within two working weeks.
The loan was agreed at 70% loan-to-value (LTV) on SDKA’s semi-commercial product at a flat rate of 1.10% over 12 months.
Interest was retained for three months to help with serviceability, as all parts of the project are expected to start generating income within 90 days.
Exit will be achieved through refinance on the property’s uplift value of £535,000.
Kunal Mehta (pictured), managing director of SDKA, said: “At the outset it was clear this was a well-executed project which had run into problems that were completely outside the developer’s control.
“In bridging we know that trust is everything and that is something we deliver by the barrel full.”
Adlam said: “SDKA was quick to understand the project and the applicant’s vision, after which they used every possible avenue to ensure the funds were released right on-time.
“What impressed me most was their customer-first approach which was central to a timely completion from day one.”
