December 17th, 2019.
Deal of the Month December 2019: Hurdling Obstacles to Fund Eight New Homes
Here at Pure Commercial Finance, our expert brokers often attend events and provide presentations on finance. It was at one of these that our Head of Structured Finance, Tom Lee, met the client involved in this ‘deal of the month’.
About the Deal
Our client, a first-time developer, came to us having optioned a site which combined an old pub and land, for which they had obtained planning permission to build eight homes, across two build phases. They were seeking finance to assist with part of the purchase of the site and 100% of the build costs, this would be influenced by the new potential value.
Of course, for us to choose this case as ‘Deal of the Month’, it wasn’t straight-forward. Investigations found asbestos in the pub which will mean a costly demolition, there is tight access meaning getting trucks and vans onto the plot is difficult, and lastly a coal mining report said there was historic activity nearby which could affect the integrity of the ground, therefore an intrusive report needs to be carried out.
Despite the obstacles, we were able to secure suitable finance and phase one of the project is now underway.
The Director at CDI Wales, said:
“Working with Tom from Pure Commercial has been a pleasure from beginning to end, Tom has secured competitive funding for our development in spite of a few challenges along the way, he’s kept us informed, pushed issues along and found solutions as needed to ensure the purchase was completed and funding is in place for the next exciting stage. I’ve already recommended his services to others and will continue to do so.”
Tom Lee, Head of Structured Finance here at Pure Commercial Finance, added:
“It was great to be able to advise and provide funding for their first scheme and it was a pleasure working with them. They showed a great level of experience which was shown with the planning, the development pack and associated reports. I look forward to working with them on future projects.”
Do You Have Your Own Project You Need Funding For?
If, like this client, you have interest in a property or land and have big plans for redeveloping it, don’t let cashflow stop you from making your plans a reality. Speak to our development finance brokers today to learn how we can help you secure the funds you need.