Specialist bridging lender, Aspen, has announced that it has completed a £2.1m bridge-to-let finance facility to refinance and complete a complex mixed-use development in Doncaster, with a multi-strategy exit already in place.
Aspen completed the Finish and Exit facility within two weeks, providing an initial day-one advance of £1.85 million with a further £250,000 released in arrears to finalise outstanding works.
The loan is secured against a mixed-use scheme that includes a former public house being converted into three ground-floor commercial units with two residential flats above, alongside four newly completed detached four-bedroom homes on the same site.
One of the commercial units has already been let to a major UK supermarket chain, generating investment income and adding security to the overall scheme.
Despite the complexity of the asset and a 72% loan-to-value ratio, Aspen recommended its No Valuation product to meet tight timescales.
Aspen finalised the bridge at a flat rate of 0.79% per month over 12 months. The bridge-to-let finance structure also allows the borrower to transition, using the same documentation, onto a serviced BTL period at 6.94% per annum for a further year.
Exit will come through the sale of the four completed houses. The facility gives the developer time to maximise transaction values while securing suitable tenants for the apartments and remaining commercial units.
In line with Aspen's one-person per-case customer service commitment, senior underwriter Laura Randall handled the application from start to finish.
"The transaction demonstrates how we can quickly structure unique funding solutions, even on complex mixed-use developments which require flexible underwriting, phased exits and an understanding of multiple asset classes," said Randall.
"By combining funding with retained works and a Bridge-to-Let strategy, the facility allows the client to complete the project without the pressure of an immediate disposal while maximising value across the development."
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