"This deal is a great example of what we can achieve when we lean into the more complex aspects of a transaction"
- Jamie Peacham - Pallas Capital
Pallas Capital has completed a £3m residential development loan to support the first phase of a build-to-sell housing scheme in Roch, Pembrokeshire.
The 20-month facility is structured at 65% LTGDV and will fund Phase 1a of the project, which includes the construction of 10 residential homes. An experienced local developer with an established track record is delivering the scheme.
Senior originator Mark Witherington and underwriter Jamie Peacham (pictured) led the transaction for Pallas Capital, following an introduction from Laurie Baugh at Approved Finance. The deal adds to Witherington’s experience across the Midlands and Warwickshire, while reinforcing the lender’s appetite for regional residential development opportunities.
Structuring a residential development loan for complex sites
The project presented legal and technical challenges, including a complex title structure and areas of unregistered land. These factors often slow progress when developers rely on more traditional funding routes.
Pallas Capital worked closely with its legal partners to navigate these issues and structure a residential development loan that allowed the scheme to proceed. The approach reflects a willingness among specialist lenders to handle more detailed underwriting requirements where viable projects face barriers to funding.
Jamie Peacham, underwriter at Pallas Capital, said: “This deal is a great example of what we can achieve when we lean into the more complex aspects of a transaction. It required a significant amount of thought from our legal partners and a pragmatic, commercial mindset to get it over the line."
Jamie added, "It is always a win to work alongside trusted partners who understand the local market. We are happy to see this project move into the construction phase and look forward to supporting the client further as the site progresses.”
Ongoing funding discussions
The completion of the residential development loan marks the start of a broader relationship between Pallas Capital and the developer.
Discussions are already underway regarding funding for future phases of the scheme, as the lender looks to provide continued support throughout the project lifecycle. This reflects a wider trend in the market, where lenders seek to build longer-term partnerships with developers rather than focusing solely on individual transactions.
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
