Earlier this month, Alternative Bridging Corporation (ABC) scored a hat-trick by completing three loans in one day. B&C heard from Jonathan Rubins, Managing Director of ABC, who provided more detail about each case...

Completing three loans in a day was hard work but very satisfying for the ABC team as each transaction had its own unique character and the loans were executed efficiently and without fuss or bother in a time of credit shortage and the absence of support from the mainstream lenders.

Deal 1: Hull, Yorkshire - £900,000

We provided a short term loan secured against a substantially completed executive house in a prime location near to Hull. The loan was to refinance a short term development facility which had expired and to fund completion of the remaining construction of the house prior to sale. As a result of sales of previous similar properties on the site, we inherited a complicated title where access had been prejudiced which we, and our solicitors, resolved for the benefit of both borrower and lender. Drawdown was against a tight timeframe driven by a prospective sale and the need to complete the construction to achieve this.

Deal 2: South London - £300,000

We financed the purchase of a redundant public house for which planning permission had been received – allowing conversion to residential use. Utilising additional property owned by the borrower, we were able to provide most of the purchase price and refurbishment costs. A loan for a period of up to a year was agreed in order to allow the borrower time to make minor amendments to the planning permission before commencing the development. The borrower is a small family company, which is experienced in adding value to their investments as each member provides different skills – from acquisition and letting to design, planning and construction.

Deal 3: East London - £2,500,000

A challenging loan we completed was providing finance for the purchase of a redundant industrial building which had lain empty for 40 years. Situated on a high street in a prime trading position, the developer had an exciting vision to convert it into a retail precinct, complete with food court and supermarket, to complement the established retail activity adjoining it. ABC was asked to take a view on planning as previous consents had expired and the most recent was refused renewal as it no longer satisfies the Local Authority’s requirements in relation to design.

Because the shareholders of the borrower agreed to support the project with both a significant cash equity injection and collateral security and because of the introducing broker’s assistance and cooperation, we were encouraged to take a view on a number of issues including the absence of a current planning permission and perceived contamination risks. ABC looks forward to supporting this project and further loans from the broker and to the developer.