Development deal in real time: Part 2

Development deal in real time: Part 2

A series of updated monthly instalments looking at a real life development case study, which will include pictures of the sites and details and hurdles the development faces.

Last month, we brought you the first in a series of monthly installments looking at a real life development case study, which includes pictures of the site and hurdles the development faces. This month we hear the latest about the development’s progress… 

Despite the torrential rain that we have been subjected to over the last six weeks, works have still continued on site. Work started in late April and the development has made good progress with the block and beam floor now in situ and works on the shell have now commenced.

Getting out of the ground is the most uncertain and tricky part of a development process and once this part of the project has been completed the rest usually slots into place. If there are any unknown cost overruns, this stage is where they tend to take place as ground conditions are never fully known until work commences.

Borrowers can dig trial pits and have investigations carried out but they will not be able to test the whole site; there are sometimes some nasty surprises lurking beneath ground.

Thankfully, in this case the project has started off smoothly with no major unforeseen problems or issues.

The borrower is confident that if dry weather continues that they will continue to make headway on the shell with another inspection required in July.

Nick Warren, who heads the lending division at Regentsmead, commented: “The borrower has made excellent progress in what has been a very difficult period. This has been due to the extensive rainfall throughout May and June. A number of our other clients have had delays on site due to the wet weather but hopefully they will be able to make up lost time over the coming weeks.”


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