Aspen delivers £2.1m finish and exit facility for mixed-use development

Aspen has provided a £2.1m bridge-to-let facility to ensure a refinance and completion of a mixed-use development in Doncaster, with a multi-strategy exit already planned.

Completed in under two weeks, the finish and exit facility provided an initial day-one advance of £1.85m with a further £250,000 in arrears to finalise outstanding works.

The loan is secured against a mixed-use scheme incorporating a former public house under conversion into three ground-floor commercial units with two residential flats above, along with four newly completed detached four-bedroom homes on the same site.

One of the units has already been successfully let to a major UK supermarket chain, providing initial investment income and improved security within the overall scheme.

Despite the complexity of the asset and a 72% LTV, Aspen recommended its no-valuation product to ensure tight timescales were met.

The bridge was finalised on a flat rate of 0.79% per month over 12 months, with an option for the borrower to transition, using the same facility documentation, onto a serviced BTL period at 6.94% per annum for a further year.

Exit will be achieved through sale of the four completed houses, with the facility giving the developer time to maximise transaction values and secure suitable tenants for the apartments and remaining commercial units.

The application was taken from start to finish by senior underwriter Laura Randall.

Laura said: “The transaction demonstrates how we can quickly structure unique funding solutions, even on complex mixed-use developments that require flexible underwriting, phased exits and an understanding of multiple asset classes.

“By combining funding with retained works and a bridge-to-let strategy, the facility allows the client to complete the project without the pressure of an immediate disposal while maximising value across the development.”