Tuscan Capital, a short-term property finance specialist, has completed a £1.765m development exit facility for a Grade II-listed former pub converted into 25 flats in Retford, Nottinghamshire.
Introduced by Merryoaks Property Finance, Tuscan provided the exit facility over a 12-month term, funding the property against the aggregate value rather than the block value.
The development includes studio, one-, and two-bedroom flats and involved a complex borrowing structure, including a trust, an Isle of Man company, and an overseas Ultimate Beneficial Owner (UBO).
Tuscan Capital worked with all parties, accepting a readdressed valuation report and sending one of its asset managers to the site. The borrower also had to secure retrospective planning before completing the loan.
Stephen Palfreeman, associate director at Tuscan Capital, said: “This wasn’t the easiest deal to execute, given the borrowing structure, planning issues and awaiting practical completion sign-off but I am really pleased to complete our first deal with Merryoaks.
“George was extremely proactive and helpful in managing all the requirements that came with this deal.
“A huge amount of credit should also go to our underwriter on this deal, Jade Lidiard, who was fantastic in helping move this transaction along.
“Development exit finance is one of our most compelling offerings and we have a strong appetite for these deals.
“Any broker looking for a competitive development exit proposition, and the ability to work quickly and efficiently with even the most complex of deal structure, should contact Tuscan to see how we can work together.”
George Melling, property finance adviser at Merryoaks Property Finance, said, “Tuscan have an attention to detail that is truly remarkable, along with a common-sense approach which sometimes goes out the window when you are a lender; not with Tuscan.
“They are a pleasure to deal with and I will be happily recommend them and the team, especially Steve and Jade. I couldn’t be more thrilled with the results we’ve achieved together.”
