Colin Sanders

Tuscan Capital funds urgent £2.2m developer exit bridge

Tuscan Capital has completed a £2.2m bridging facility in a five-week turnaround to aid a developer client facing expensive forfeit-of-deposit costs.

The case was introduced by Marcus Wood, principal at River Commercial, a London-based advisory firm.

According to the lender, the high-pressure situation occurred after the developer had exchanged contracts for the purchase of a site — complete with residential planning consent for multiple units — in north London.

In addition, the client was facing delays on the finalisation of his existing 20-home residential project in the North West due to the impact of the first national lockdown and difficulties in sourcing essential building materials.

Tuscan Capital refinanced the over-running development and released extra capital to enable the acquisition of the London site to complete.

The 12-month term bridging loan was completed at 65% LTV and was secured solely on the asset in the North West.

The loan will be repaid from the sale of the site’s remaining eight homes, all of which are on schedule for completion following final works.

Marcus commented: “With my developer client under extreme time pressure, I was anxious to place the deal in the right hands. 

“From the moment I called the team at Tuscan Capital, they took ownership of the situation, kept me informed throughout the process, and delivered to an extremely tight deadline. 

“I know that my developer client is somewhat relieved and more than a little grateful that the deal got done.”

Colin Sanders, CEO at Tuscan Capital (pictured above), said: “Up against the clock, we were able to conduct our due diligence quickly and without undue fuss, with our underwriting team working in close liaison with our highly experienced professional asset manager, Pat Gilles.

“Our lawyers, Lawrence Stephens, also pulled out all the stops to close the deal within a five-week timeframe [to] allow the client to complete on the purchase in time.”

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