February 20th, 2016. Ben Lloyd
Deal of the Month: Development Finance for Luxury Properties
We believe in the importance of building strong broker to client relationships, as dealing with finances requires a lot of trust. And this case study is a great example of how this familiarity can help when seeking funding.
A longstanding personal relationship helped secure funding for a luxury development in Devon. How? Well, having inherited land from his family, our client was able to increase its value by 600% by securing planning permission for two new luxury properties in a development that would have been worth an estimated £3.5m.
However, there were challenges: notably the value of property in that part of the country, and the fact that the client had paid only planning and professional costs, and had put little other finance into the project.
But, we knew the client well and he already had substantial development experience. We had even supported him through previous projects. This gave us the confidence to present his case to funders, having experience of his skills and what we thought would be the benefits to backing the project.
The development was funded at 55% of GDV at a competitive 7% pa, enabling the developer to get the properties built and ready for sale. These are currently under construction and we can’t wait to see how they turn out.
Article By Ben Lloyd
February 20th, 2016
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben