Dan O'Neil

SPF and LendInvest close three deals worth £14m

SPF Private Clients and LendInvest have completed three deals totalling £14m, comprising a planning bridging facility, a sales exit loan and a residential development facility.

The £9.75m development loan, agreed at 65% LTGDV, assisted the first borrower with funding for the construction of 18 luxury flats in Radlett, Hertfordshire.

Meanwhile, the other two deals totalling £4.2m were undertaken on behalf of another client for a site in Cornwall — comprising 12 residential units, and old county hall and cleared land to the rear — which had been put into receivership by the borrower’s existing lender.

The foreign national client required the funding to take control of the site again, sell the properties and obtain planning consent for a new residential scheme of 75 units. 

The 75% LTV development exit loan and the 65% LTV planning bridging facility — both agreed on 12-month terms — allowed the client to re-acquire the site and refinance the existing bridging debt and part of the mezzanine finance, with the provider of the latter remaining as a second-charge holder.

It also offered the client additional time to sell the remaining completed units and obtain planning permission for the new scheme, in partnership with a regional housebuilder.

Dan O’Neil, director of real estate - debt advisory at SPF Private Clients, said: “Our long-standing and successful relationship with LendInvest was crucial to the success of these deals, particularly the bridging finance cases, which were particularly challenging.

“In addition to the fact that we were financing a foreign national with a site in receivership at high leverage, we had also been let down by another bridging lender during the process at a late stage. 

“As always, LendInvest was fast, flexible and its deal execution was second to none.”

Steve Larkin, head of development finance at LendInvest, added: “We have worked with SPF on bridging and development deals for many years and understand and appreciate each other's position in complex transactions like these.

“To close three deals in the space of a few days brought its own challenges; one was particularly complex involving senior and junior lender redemptions, while the other was time-constrained from a contractual perspective. 

“Dan and I made sure we were always available to discuss issues and jump on calls at a moment's notice, which can be critical with the number of external stakeholders involved.

“We enjoy working with SPF and already have a number of new deals lined up — long may it continue.”

Leave a comment