Fiduciam has provided a £3.2m permitted development facility helping an innovative developer complete a unique custom build development. The 24-month facility refinanced the borrower’s existing debt and offered flexible funding options to help the developer complete the scheme in line with his changing sale strategy.
The property consists of five terraced custom-build shell houses in Peckham Rye, London. They are built as split-level houses and the client, Unboxed Homes, offers purchasers support in fitting the units out to their personal specifications.
Unboxed Homes specialises in bespoke residential development projects; they build properties to shell and core, with the walls, plastering, wiring, and plumbing complete and ready for homeowners to fit out. For purchasers who prefer a more hands-off approach but still want to benefit from a customised fit-out, Unboxed Homes can fit-out the properties to include a bathroom and kitchen or even complete the fit-out in full while working with the purchaser.
The challenge for the developer was finding funding that could accommodate all scenarios potential purchasers may want. Fiduciam provided a flexible funding facility that enabled the client to pull down funding as required, covering all options from fully fitting out the houses to converting the houses to apartments. This fit-for-purpose funding structure offered the developer flexibility to find the best and most profitable sale options, both for them and the ultimate homeowner.
The developer already had a strong track record of successful developments and has won design awards for previous projects. Fiduciam therefore created a bespoke finance structure to accommodate the specific needs of this unique deal and worked closely with the developer to provide flexible solutions for his ongoing needs.
Ryan Parrett, business development manager at Fiduciam says: “This was an unusual deal that required a number of flexible solutions to match the innovation and flexibility that Unboxed Homes was providing for its end customers. We could see the vision that Gus at Unboxed Homes wanted to achieve and enjoyed putting together a solution that helped him to achieve that.”
Gus Zogolovitch, managing director at Unboxed Homes: “The majority of housing is poorly designed and badly built. I believe that if more of us had a say in the creation of our own homes, we would end up with better designed homes of better quality, that are better value and what’s more, better for the environment.
“Fiduciam enabled us to achieve that vision on this development. They 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.”