"Our ability to step in before the project was completed - something many lenders typically avoid - proved to be a game-changer"
- Alex Mills - Shawbrook
Shawbrook Bank has announced that it has successfully provided an experienced, family-run developer with a £10.8m single-lender development exit loan facility to refinance a luxury block comprising 17 apartments and one retail unit in the heart of central London.
Originally structured as a joint funding arrangement with two lenders - £6m for 11 apartments earmarked for sale and separate funding for 6 rental units - the developer faced unforeseen delays that prevented the second lender from proceeding at completion. Shawbrook stepped in pre-completion to provide a fully consolidated loan facility, a move that many lenders would not consider.
Shawbrook’s dedicated Relationship Director, Alex Mills, tailored a 70% Loan to Gross Development Value (LTGDV) facility that leveraged the developer’s strong track record and experience. This bespoke solution enabled the client to refinance the entire scheme with a single facility, providing operational efficiencies and cost savings.
The consolidated £10.8m loan repaid existing borrowing and also secured a more competitive rate for 12 months, giving the developer crucial breathing room to complete the project and bring high-quality homes to market for both sale and rental.
“Our ability to step in before the project was completed - something many lenders typically avoid - proved to be a game-changer," explained Alex Mills, relationship director of development exit finance at Shawbrook. "Initially, we planned to co-fund the deal at completion alongside another lender, but unforeseen delays prevented them from moving forward.
"Leveraging the borrower’s strong track record and our in-house development finance expertise, we were able to consolidate the funding into a single, flexible, and bespoke facility. This gave the client the breathing space needed to complete the project and deliver high-quality homes to the market.”
Neil Peck, Principal at Westbury Advisors, added, “The development exit loan that Shawbrook delivered for our client, especially during delays with the other lender, was fantastic. Alex and Tina kept us fully informed throughout, providing tailored finance that met our client’s specific needs. We’re looking forward to hopefully working with Shawbrook again on the next project.”
