Pallas Capital has completed a £6.1m development loan to fund the ground-up construction of a 60-flat residential scheme with two ground-floor commercial units in Northampton, with a gross development value of £11m.
The 24-month facility was structured at 57% LTGDV. The borrower is an experienced developer with a track record of delivering apartment schemes who intends to retain the completed development as a long-term investment, refinancing onto buy-to-let on completion rather than pursuing a sale exit.
Senior originator Mark Witherington and underwriter Jamie Peacham led the transaction for Pallas Capital. Matt Usher of Usher Commercial Solutions, a long-standing broker relationship for the lender, introduced the deal.
The transaction involved several legal and technical complexities, including party wall awards, right of light considerations and a series of vendor-related requirements. Usher worked alongside Pallas Capital's team throughout to resolve each of these points and keep the transaction on track.
Three professional advisers supported the deal through to completion: Neil Allison as valuer, Samier Alnaggar of TSA Riley as monitoring surveyor, and Juliet Baboolal of gunnercooke on legals.
"I've spent the last 28 years lending in and around Northampton, and while the town has changed hugely in that time, I've backed a good number of genuine new-build schemes around the town centre over the years, most of them delivered through the redevelopment of brownfield sites," said Witherington (pictured).
"We're proud to be backing the delivery of new homes and supporting developers in the area, showing true understanding of the regional metrics and understanding its potential."
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