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Flexible development finance solution for custom-build homes

Bridging loans

Fiduciam provided a £3.2m development finance facility for a custom-build homes scheme in south London.  The challenge was to provide the developer with a flexible funding solution that could accommodate the variety of end products potential purchasers might desire.  A structure was agreed that enabled the client to pull down funding as required, covering all options from shell sale to fully fitting out the houses.  This fit-for-purpose funding offered the developer the flexibility to find the most profitable sale options.  The borrower’s testimonial: “Fiduciam worked closely with us to provide a flexible funding solution that not only let us manage the development in the way that we felt was important, but also in the way that our homebuyers wanted.”

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Complex ground-up development loan in Manchester

Bridging loans
Fiduciam granted a £5m loan for the ground up development of 38 flats in Manchester.  The development loan was structured to overcome the challenges posed by the complex property title and overage agreement, and to reduce the likelihood of cashflow squeezes during the project. The borrower’s testimonial: “There were elements to this site which had initially complicated obtaining development finance, also owing to the rigidity of the large banks.  Then Covid came along, disrupting supply chains.  Fiduciam worked closely with us to put in place a facility that alleviated cashflow pressures exacerbated by the pandemic.  Fiduciam went out of their way to overcome the complications and find solutions.”
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Equity extraction bridging loans to accelerate development pipeline

commercial mortgages
Housebuilders can improve profitability by employing their equity more efficiently and avoiding development pauses.  Fiduciam routinely works with housebuilders to accelerate the development cycle and recycle capital into new schemes.  This can be achieved through a hybrid facility covering multiple schemes or by structuring development finance to include an equity release on practical completion.  Fiduciam provided a £1.6m hybrid development loan to purchase a site in Tooting for the development of five dwellings.  The initial loan amount was increased to cover the acquisition costs of the site by releasing equity from the borrower’s newly completed scheme in West Norwood, which was also been financed by Fiduciam.
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85% loan-to-cost acquisition and refurbishment facility

commercial mortgages

Fiduciam provided a prominent UK real estate investor with a £5m acquisition loan to complete a complex transaction involving the purchase of 32 residential apartments and the simultaneous sale of a six-unit development plot contained within the title. Individual leaseholds were granted by the vendor before transferring the freehold title. While the borrower was able to secure buy-to-let mortgages on seven leasehold units, they required Fiduciam’s assistance to complete the acquisition of the 25 other units within the mandated timescale. The bridging loan was underwritten on the basis of 70% of the breakup value, 85% of block value and 85% of acquisition cost. The facility allowed for the refurbishment of the flats during the term.

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Financing a Cornish Hotel

commercial mortgages
Fiduciam provided Hustyns Resort in Cornwall with a £1.2 million loan to invest in the hotel, including a restaurant refurbishment and glamping offering.  These additions helped further diversify the resort’s offering, as well as maximise income during the peak summer months.  The principal is an experienced hotelier and has operated a series of hotels in both the United Kingdom and the United States.  The two-year bridging loan allowed time for accounts to be established before the borrower refinanced onto a term product with a commercial lender.  Ravi Gupta of Hustyns Resort commented: “The loan from Fiduciam means that we can not only weather this latest lockdown, but we can make the investments we want into our resort and know that our business’s future is secure.”