Aspen completes £2.1m facility for mixed-use development
The 'Finish and Exit' facility, which completed in under two weeks, included an initial advance of £1.85m alongside £250,000 retained in arrears to fund outstanding works.
Aspen has completed a £2.1m bridge-to-let facility to support the completion and refinance of a mixed-use development in Doncaster.
The ‘Finish and Exit’ facility, which completed in under two weeks, included an initial advance of £1.85m alongside £250,000 retained in arrears to fund outstanding works.
The loan is secured against a mixed-use scheme comprising a former public house being converted into three commercial units with two flats above, alongside four newly completed detached four-bedroom homes.
One of the commercial units has already been let to a major UK supermarket chain.
Aspen said the facility was structured at 72% loan-to-value (LTV) using its no valuation product to help meet tight completion timescales.
The loan was agreed at a flat rate of 0.79% per month over 12 months, with the option for the borrower to transition to a serviced buy-to-let facility at 6.94% per annum for a further year using the same documentation.
The developer plans to repay the facility through the sale of the four houses while letting the remaining apartments and commercial units.
Laura Randall, senior underwriter at Aspen, said: “The transaction demonstrates how we can quickly structure unique funding solutions, even on complex mixed-use developments which require flexible underwriting, phased exits and an understanding of multiple asset classes.
“By combining funding with retained works and a Bridge-to-Let strategy, the facility allows the client to complete the project without the pressure of an immediate disposal while maximising value across the development.”
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