Showcasing the latest successful transactions in the specialist finance market
£4.3M
developer exit loan
Octane’s 70% LTV loan is to a highly experienced property developer and is secured against the development of nine three-bedroom newbuild units in King’s Lynn.
The development was situated in a desirable town in north Norfolk and will be marketed as high-spec residential homes targeting affluent buyers, second-home purchasers and investors.
Having built the site using development finance our client needed more time to finish, market and sell the properties. The site was part-complete at the point of completion.
Octane’s loan releases £3.4m on day-one, which refinances the existing debt on the site and funds the remaining build costs. A further £450,000 in drawdowns will be made available to the developer once the site reaches practical completion. This
further facility can be used as a capital raise to help fund other projects and interest will only be charged once it has been drawn.
The interest rate equated to 0.76% per month (BBR linked) at the time of writing. As with all of Octane’s loans, the interest rate is variable; linked to the Bank of England base rate, meaning the client would benefit from a rate reduction in the event the base rate was to drop mid-loan term.
The loan was completed with a 2% arrangement fee and no exit fees. The deal was introduced by Stephen Burns from Word on the Street, who played a pivotal role in helping to
structure and complete the loan, especially amidst some challenges presented late on.
From Octane, the loan originated by Mark Stephenson, senior BDM, and underwritten by Nicky Pack, senior credit manager. Alongside Octane’s Structured Finance Team, Mark and Nicky worked tirelessly to ensure the case was completed on time.
The valuation was undertaken by Lambert Smith Hampton and our lawyers were Daniel Baker and Seray Kitchingman at Weightmans.
Mark commented: “When a broker of Stephen’s experience calls to tell you they have a deal perfectly suited to you, you’re on to a winner. He knows there are few keenly priced development exit lenders, who have appetite for sites which are yet to reach practical completion, which makes our proposition a unique one. We structured this loan in a way which met all of our client’s requirements—refinancing their development loan, funding the remaining build costs and providing a capital raise. With interest-only charged on drawn funds, the client’s interest burden is reduced significantly.”
Mark Stephenson
MS Lending Group
MARCH CASE STUDY
Loan Size: £839,000
Loan Term: 12 months
LTV: 69.9%
Reason for loan: Raising funds on an HMO property they already own to repay current charges
Location: London
Exit plan: The client will be procuring a longerterm refinance within six months of our loan term
Time to fund: Six working days
Broker/Borrower/Relevant parties: Thomas Wall, managing director and founder of Beat Finance, Sam Bryce, underwriter at MSLG and Tom Herbert, relationship manager at MSLG
Our client, new to MS Lending Group, needed to raise funds on an HMO in west London, which they have owned since 2020 to repay existing charges. Speed was crucial, as the client would have incurred an additional £30,000 in interest if not completed within a short period of time. In true MS Lending Group fashion, every part of our process came together to get the deal over the line, securing funds for the client in just six working days.
This is a prime example of our principle ‘we are what we do, not what we say we’ll do’ —delivering for our clients when it matters most.
Comments from parties within the transaction: “MS Lending Group provided exceptional support in securing a time sensitive bridging loan for one of Beat Finance’s repeat clients, demonstrating their ability to assess the situation quickly and make decisive, informed decisions. Their commitment to meeting the client’s deadline was evident throughout the process, ensuring that everything progressed smoothly, and the funding was in place exactly when it was needed.
Sam and Mike's proactive approach, combined with regular updates kept all parties informed and reassured at every stage. The synergy that we have with MS is evident and is why the Beat Finance team enjoy working closely with them. Their expertise, efficiency, and dedication to great customer outcomes made all the difference. They delivered a seamless and stress-free transaction that ensured the borrower was not met with a significant late payment fee (around £30,000)” — Thomas Wall, Beat Finance.
Atelier FINANCES DEVELOPMENT OF NEW HOMES IN NOTTINGHAMSHIRE
Loan size: £2.8m
Loan term: 15 months
LTV: 70%
Reason for the loan: Ground-up development facility to fund the build of 10 new properties
Exit plan: Sale of individual units
Rav Kudhail
General transaction details: We provided a 15-month £2.8m gross development facility to fund the development costs to build out 10 houses for private sale, including an affordable housing unit, in Worksop in the east Midlands.
Comments from parties within the transaction: “We’re committed to supporting high-quality residential development across the UK and delighted to work with Stancliffe Homes again to fund this development. We’ve providing the funding for 10 new homes in Nottinghamshire and expect the mix of detached houses and bungalows to fulfil the requirements of local families, with a focus on sustainability, individuality and community. Their track record of delivering well-designed homes aligns with our mission to back ambitious developers creating positive impact in their communities.” — Rav Kudhail, Lending director at Atelier
Fairbridge Capital
£3.6M MULTI-LET INDUSTRIAL DEVELOPMENT
Loan size: £3.6m
Loan term: 12 months
LTV: 65%
Reason for loan: Multi-let industrial development
Location: Glasgow
Exit plan: Refinance onto a term facility
Time to fund: 10 days
Broker/borrower or relevant parties: Direct to borrower Rate: 1.25%
Comments from parties within the transaction: “ We are proud to announce the completion of a £3.6m bridging loan on a multi-let industrial development. This loan supported a repeat borrower in expanding their industrial real estate portfolio. While the deal had its complexities, our streamlined approach meant that from the instruction of our legal team, we completed in just 10 days. At Fairbridge Capital, we take a personalised and flexible approach to structuring complex deals, ensuring a truly commercial understanding of our clients' financial requirements.” — Dalian Gill, Co-founder of Fairbridge Capital
Dalian Gill
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