SDKA has announced that it has provided a £2,275,000 residential bridge to save a developer's plans to convert the former AA building in Newcastle upon Tyne into 116 flats.
The deal nearly collapsed when another lender stalled during the application process. Broker Chris Ferguson of Ferguson Capital contacted SDKA to rescue the transaction.
SDKA accelerated the lending process and arranged a valuation. The initial loan represented 87.5% of the purchase price, but the final loan-to-value settled at 53.66% after valuation. The lender's in-house legal team resolved several complex issues during this period.
"This deal was misfiring and it was going to take a pragmatic and flexible lender that could get hands-on quickly," Ferguson said. "That's why I contacted SDKA, I knew their flexible lending criteria, individual case approach and service levels would be the best option to restart this acquisition."
The loan completed in seven weeks from initial contact. SDKA structured the facility at a fixed rate of 1.05% per month with 12 months of upfront interest retained.
The developer will exit through refinancing onto a development finance product once pre-commencement conditions are satisfied.
"When we were first approached the size and complexity of the deal was clear from the outset, and this is where we shine," said Kunal Mehta, managing director of SDKA. "It is imperative to look beyond the basic numbers and understand the applicants' vision, and we enjoy sharing that journey."
