Pallas Capital completes £3.9m Shropshire refinance to fund second housing phase
The loan refinanced the completed first phase and will fund construction of the second phase, taking the development to eight homes.
Pallas Capital has completed a £3.9m development loan for a residential scheme near Market Drayton, Shropshire.
The loan refinanced the completed first phase and will fund construction of the second phase, taking the development to eight homes.
The 16-month facility was agreed at 65.5% loan-to-gross development value (LTGDV).
The borrower was a developer and contractor with experience delivering residential schemes in the local area.
Pallas Capital took the borrower’s existing residential portfolio in Stone, Staffordshire, as additional security after receiving the valuation.
It also revised the solicitor and valuation instructions and managed the transfer from the previous lender to help the borrower avoid penalty charges after its former facility ran beyond term.
The deal was introduced by a broker and completed about four weeks after terms were agreed.
Mark Witherington (pictured), senior originator at Pallas Capital, said: “This deal is a good example of what we try to bring to every transaction: staying close to the borrower and working out a structure that fits, rather than defaulting to no when something doesn’t tick the standard box.
“It’s the kind of hands-on underwriting that development finance tends to need, and it’s a big part of how we’ve built our reputation with brokers and developers since launching.
“We’re pleased to have got the development moving into its next phase, and we look forward to continuing to support the borrower as the scheme comes to market.”
Witherington added: “It’s exactly the kind of relationship we want to build more of as we grow our presence in regional development finance.”
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