Specialist lender Together has provided a £2million short-term loan – in just eight working days – for a property development company to re-finance a luxury apartment complex.
Manchester-based RB Properties needed the bridging loan to pay off its existing finance company which had provided initial funding to build nine contemporary flats worth £4.2million.
A valuation had already been carried out on the luxury apartment complex of two-bedroom homes – with a three-bedroom penthouse – in desirable Bramhall, south Manchester.
Two of the flats have been sold and three more sales are due to complete in the next few weeks, while the remaining apartments are expected to be snapped up within the next three months.
The development company also wanted to unlock £200,000 worth of equity to plough back into its successful property business, which is currently involved in three more development projects in the North West.
Alex Garland, corporate relationship director at Together, said: “The apartment complex is fantastic, in an affluent area of the North West, and the completed scheme is already proving popular with buyers.
“On top of that, we have a long-standing and fruitful relationship with RB Properties, having worked with its directors for many years – and on various successful projects – so we were happy to provide the £2million bridging loan they were looking for.”
Michael Drogan, of RB Properties, said Together’s finance had allowed the developers to redeem the original loan and provide working capital to press ahead quickly with the company’s next project. The borrowers will exit the bridging loan with Together by selling the remaining apartments.
He said: “We wanted to pay back the original loan and inject some capital so that we could push on with the next of our high-quality developments.
“We’ve worked with Together over a number of years and it has always been fantastic. We brought the completed project to the lender because of its experience in this industry and it has enabled us to start on our next project while waiting for the Bramhall apartments to sell.”