The 21 month facility will initially fund the refurbishment of an existing detached house, with a further tranche ring fenced to fund the construction of four new family homes once full planning consent is granted.
Located around eight miles north west of Leeds city centre, the site comprises a detached stone built house on a larger plot, with land behind the property allocated for the additional homes.
The borrower is an experienced developer with 30 years of residential development, refurbishment and regeneration experience across Leeds and the wider North of England.
It is the fifth scheme Pivot has funded for the developer. The project is being delivered through the borrower's own contracting business, allowing refurbishment work to begin following completion of the facility.
Funding for the refurbishment was provided at 65.9% LTGDV and 82.3% LTC. The development tranche for the four additional homes will be released separately once full planning consent is in place.
Pivot structured both phases under a single facility, meaning the borrower will not need to arrange separate development finance if planning is secured.
The deal was led by Georgie Crocker, relationship manager at Pivot, and Nathalie Manser, credit manager at Pivot, and completed in 16 days.
Crocker commented: "Our track record with the borrower meant we could move quickly, having funded four previous developments together. From day one, the borrower has certainty to acquire and refurbish the existing house, with Phase 2 funding agreed and ready to draw once planning is secured. This removes the need to source new finance between phases. In a challenging market, making the funding process as smooth as possible for developers is a priority for us; ultimately, we all want to see the development succeed."
Manser added: "Recognising the different risks and timelines across the two phases allowed us to structure the facility around the way the development would actually progress. Our efficient credit process meant we could agree that structure quickly, giving the borrower immediate funding for the refurbishment while retaining certainty around Phase 2."
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