£15m Loan Secured for Luxury Apartment Development

A developer wanted to convert an office building into residential property consisting of 142 rooms.

Our client's approach

One of our clients, a highly experienced business development company needed assistance in securing a funding. The client had set its sights on their most challenging acquisition to date, with plans to convert an iconic building into a luxury apartment building, blending local long-standing architecture whilst providing the property with a great modern influence.

The developer laid out a 2-phase process to deliver the 142 new luxury apartments in a gated community, with a build term of 22 months and a sales term of 6 months. From here, the property team from MAF Finance Group was brought in to assist with the financial requirements.

How MAF Finance Group assisted the client

Through extensive analysis of the scenario, our property team recognised that a Property Development Loan was the required solution to fund this project, and from here, the developer was introduced to the funder who saw the vision of this acquisition. Following on from the negotiation process, the funder was able to secure the funding of £15m, which amounted to 64% of the £23m Gross Development Value (GDV), allowing for this renovation to start taking shape. By securing this loan, it ensures that our client is not held back in any financial complexities and therefore has the flexibility desired and that they can access the funds that facilitated the completion of the development to take place in an efficient manner.

How MAF Finance Group help deliver the desired outcome

Thanks to the cooperation and negotiations between our property team and the funder, the client was able to secure the loan to fund such a high-scale project through a method that suited the financial requirements of the business, meaning this deal ended with the desired outcome.

Michael Ward - Director, Head of Property “It has been excellent to work with so many great solicitors, valuers and advisors on the this particular transaction”

If your business needs assistance with any type of property development facility please contact Mike Ward, Head of Property at MAF Finance Group by email [email protected] or 07512 303701

Or for any other finance product, email [email protected] or call us on 0115 958 6872.