£17.5m remortgage agreed on major South East build-to-rent development

"This transaction demonstrates InterBay's ability to structure large, complex residential investment deals with speed, confidence and a deep understanding of the PRS market"
- Marc Callaghan - InterBay

Specialist property lender InterBay has completed a £17.5m interest-only residential investment remortgage on a new apartment development in the South East, in a deal brokered by SPF Private Clients.

The scheme delivers 103 private rented units across three purpose-built buildings, offering a mix of one, two, and three-bedroom apartments, alongside underground parking and secure cycle storage. The clients, experienced property developers, plan to retain the development as part of a long-term rental portfolio strategy.

The transaction required a bespoke structure, with InterBay's in-house Specialist Property Solutions team overseeing origination while working closely with underwriting and completions throughout. The process involved valuation reviews and stress testing across multiple loan exit scenarios, securing support for a non-panel new homes warranty provider, and structuring a deferred charge over the freehold to allow separate completions across the blocks. 

This also enabled a phased transition from the development funder. Bespoke interest cover ratio calculations were completed to support a policy exception, reflecting the development's true operational cost profile.

Rental demand in the area is growing, supported by the recent opening of a new NHS hospital and university campus adjacent to the site. Both are expected to drive further employment, student growth, and housing needs in the coming years.

"This transaction demonstrates InterBay's ability to structure large, complex residential investment deals with speed, confidence and a deep understanding of the PRS market," said Marc Callaghan, head of commercial mortgages at InterBay (pictured).

"Our InterBay team and Russell Hall at SPF Private Clients worked closely to manage the case from each side, overseeing the deal from start to finish and crafted a solution to match the client's needs."

Russell Hall, executive director at SPF Private Clients, was equally positive about the collaboration. "InterBay were the ideal partner for this transaction," he said. 

"The scale and complexity of the development required a lender that understood the asset and could move with confidence throughout the process, InterBay delivered on both. Their ability to structure a solution aligned with the client's long-term rental strategy was invaluable, and this deal shows why InterBay remains a go-to lender for experienced developers seeking certainty, expertise and a collaborative approach."