The borrower requested the loan after COVID-19 lockdown restrictions caused financing delays.
The funding was acquired to refinance the original site and the investment of a second spot to allow planning for 272 residential units, with the building work at hand anticipated to begin in Q4 2020.
The scheme will be a mix of one-, two-, three- and four-bedroom townhouses and apartments. It is reported that 35% of the new builds will be affordable housing on completion.
The overall loan provision for the deal is £10m based on a LTC of 90%, with the extensive project said to be completed within a tight time-frame.
Rickesh Patel, partner at Mantra Capital, said: “Mantra Commercial, part of the Mantra Capital Group, were mandated to assist with the sourcing of funding for this scheme prior to the full impact of Covid-19 being understood in the UK.
“As the severity of the situation became more apparent, the initial lender who offered terms were no longer able to honour them.
“This was an acquisition which now had tight timescales to work towards for completion, with an increasingly limited market to operate within.
“Our close funding partner, LendInvest, quickly understood the scheme, the challenges we faced in terms of timescales, and came up with a deliverable debt package that worked for our client.”
Justin Trowse, director for bridging at LendInvest, added: “The last few months have been a particularly challenging time for the team and our brokers — facing new hurdles and having to work with a greater degree of flexibility, while performing complex transactions at speed in order to get our borrowers’ deals over the line.
“This deal was one that we were determined to deliver and complete in time so as not to disrupt the borrower’s project timeline.
“Thanks to the tireless efforts of Rickesh at Mantra, and the dedication of the team, we are delighted to announce the provision of quality funding for this project.”
Original article featured here…
The news comes after LendInvest recently launched a new structured property finance team to supply tailored solutions to large and complex property deals.