The complicated 12-month facility was for a developer on a block of 15 flats in Solihull, Birmingham, with a GDV of £5 million.
The initial advance is circa £1 million and the facility will go up to £2 million as the 15 flats are being built in the 0.5 acre site.
Speaking about the developer in this case, James Bloom, CE of Regentsmead, said: “This is his second deal with us, the previous one being a seven figure facility for the conversion of five substantial barns in Huddington, Worcestershire.
“The total debt we are restructuring is just over £1 million and this is across the three securities of a site for 15 flats in Solihull, two completed houses in Worcestershire and one of the previous barns we lent on in Huddington.”Regentsmead is restructuring some debt from Handelsbanken and is taking security over the three sites in Worcestershire.
Regentsmead will need to complete the initial advance of circa £1 million in the next few weeks to re-structure the debt on the three existing sites.
James added: “We are able to restructure debt providing the borrower has put in enough funds and the LTV is at or below the 50 per cent level.
“Without Regentsmead refinancing the debt he would not have been able to carry out the new development, so he was effectively ‘stuck’ before we got involved.
“The initial development also allows him to exercise an option on an adjoining house which will lead to further substantial redevelopment so our funding helps him unlock a very substantial profit he would otherwise not have made.”Regentsmead has extended its maximum loan size to £2 million and has declared a real appetite for deals at 50 per cent GDV.
Earlier this year, the development lender also rolled out its 0.75 per cent Exclusive Product rate on a permanent basis after an initial trial period.
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