Hampshire Trust Bank (HTB) has completed a £3.6m development finance facility to support the construction of 21 new homes in the North East, aimed at first-time buyers, local owner-occupiers and second movers.
The funding will allow the developer to deliver the second phase of a scheme already part-funded by HTB. The homes will be delivered on a freehold basis with full planning permission.
The deal was introduced by Mark Nixon at Finance 55, who continues to support the borrower’s ongoing funding needs.
The facility builds on HTB’s backing of the completed and sold-out first phase and sits alongside an existing land loan that will support future development.
As part of the transaction, HTB worked with the borrower to update land valuations and ensure the deal met policy requirements while maintaining flexibility for construction.
Russell Higgins, lending manager at HTB, said: “Having supported the first phase of this site, we were already familiar with the location, the borrower and the professional team involved.
“That background allowed us to structure this next facility efficiently and in a way that complemented the existing land funding.
“It is a good example of how continuity and experience can help move projects forward with confidence.”
HTB has also approved funding for a third phase of the site, which will see a further 23 homes built.
Mark Nixon, managing director at Finance 55, said: “It’s a pleasure to support a long-standing client on the next phase of this much needed development.
“Working with HTB continues to be a positive experience – their team brings a consistent, pragmatic approach that helps get deals done efficiently and with confidence.”
Neil Leitch, managing director of development finance at HTB, commented: “Having supported the site from its early stages, we were already familiar with the planning structure, the delivery approach and the wider objectives behind the scheme.
“That understanding allowed us to provide a facility that complemented the land funding already in place and supported the borrower’s next phase of delivery.
“Our lending directors are based regionally, which gives us the local context we need to assess risk properly and structure funding that works in practice.
“It’s that combination of continuity and local insight that helped this project move forward, and we’re pleased to be supporting the next phase.”
The transaction was managed by Josh Swaby, Russell Higgins, Rob McFarlane, Giosue Vallelonga, John McDonnell and HTB’s CQA team.
