Hampshire Trust Bank completes £21.1m development finance facility in four weeks

Hampshire Trust Bank (HTB) has completed a £21.1 million development exit and construction loan facility for a mixed-use development in North London.

The client was developing 48 high-quality apartments and two commercial units, as well as providing a new park for the local community.

The broker, Adam Stiles of Helix Structured Finance, contacted HTB for the refinancing of the facility into a single 75% loan to value (LTV) loan and time was of the essence.

The case was completed in four weeks from approval and two weeks after the professionals were instructed.

The total amount lent was £21.1m across two loans: a construction loan for the commercial element and a development exit loan for the residential parts, with the proceeds able to be retained once the loan is deleveraged to 55% LTV.

This meant that the developer was able to avoid penalties and reduce their interest costs plus gain valuable time to complete the commercial element and sell the residential units over 12 months to maximise profits on sales.

Adam Stiles, managing director, Helix Structured Finance, commented: “It would be an understatement to say we couldn’t have done this without Scott Apps and Robert Syrett from Hampshire Trust Bank. Both are nothing short of superstars and deserve every credit.

“When you have the pressure of delivering this sort of transaction, they asked me to trust them to deliver, and they absolutely did. I can’t thank them enough.”

Alex Upton, managing director – development finance, Hampshire Trust Bank, added: “This deal had the four Ts of development finance lending: Top broker; Top borrower; Top property; and, just to emphasise, Top broker (again!). And when you tick all of those boxes, it doesn’t matter how big or complex the deal is or how fast it needs to be done, we can deliver.”