Fiduciam granted a repeat borrower a £4.3 million conversion facility at 70% loan-to-value to transform the seven-storey Britannia Warehouse in Gloucester from office into an apartment building. The development budget, is fully funded by the facility. Works will be monitored by one of Fiduciam’s trusted project monitors, with development costs being paid through monthly loan drawdowns. The development finance facility benefits from generous contingency and completion deadline terms to provide sufficient flexibility to manage the repercussions of the global supply chain crisis. Once the conversion is completed the property will comprise 38 apartments, further enhancing the appeal of Gloucester’s historic docks.
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.”
|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.”
|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.
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.