Paul Munford, Century Capital

Century Capital completes two complex country development deals

Century Capital has completed on two complex, prime country development deals in Sussex.

The first loan, which was provided to its property developer client last year, was to fund the acquisition of an historic country estate in West Sussex with commercial planning consent. 

The property was originally owned by a famous 19th-century politician.

Century lent at 90% of the purchase price and the borrower then invested further equity, bringing the final GDV to £3.75m.

This year, the borrower had a rare opportunity to acquire a commercial asset in Midhurst. 

The purchase was agreed at £1.6m, with a 10% deposit to exchange, and an application for residential planning consent to bring the valuation up to £3m. 

With the timeframe crucial and the structuring complex, Century structured a new £1.7m gross loan for the client, providing the £1.45m required — being 90% of the purchase price — to complete the acquisition, with a year’s interest retained. 

The loan was provided as a second charge behind the previous loan and a first charge on the commercial asset being purchased. 

Century’s aggregated position was at £3m on £4.75m of security, totalling 63% LTV. 

Following the granting of planning on the newly acquired asset, this will become £3m on £6m, bringing it down to 50% LTV.

Luke Navin, head of lending at Century Capital, said: “This was an outstanding deal for Century as it demonstrated our agility to structure complex deals under limited timeframes, and is testament to the strong relationships we maintain with our borrowers. 

“We were ultimately able to deliver 90% funding on two prime country development opportunities with complex planning angles, leaving our borrower delighted.”

Pictured above: Paul Munford, CEO at Century Capital

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