Mortimer Street Capital partners with Recognise Bank on £7.1m loan for Bristol scheme

Mortimer Street Capital has structured a £7.1m development exit facility with Recognise Bank, secured against a residential development just south of Bristol.

The facility is secured over seven completed units, four of which are sold subject to contract, together with two additional plots currently at damp proof course stage.

Each home carries a Zero Bills guarantee for ten years under the Octopus Energy Zero Bills initiative, giving purchasers certainty over energy costs for a decade from completion.

Funds were used to redeem the existing development finance facility and to release capital for the developer’s further site acquisitions, allowing the borrower to move onto its next schemes without waiting on the remaining sales to complete.

Justin Trowse, managing director at Mortimer Street Capital, said: “Orchestrating funding for a mid-sized developer is a moving feast. Sales positions shift, programmes move, and the next site rarely waits.

“Developers are not short of offers, and headline pricing is the easiest part of the conversation. The harder part is getting a deal done and finding a partner who understands the sponsor’s requirement and can keep pace with it.

“Heather and the wider Recognise team acted swiftly and effectively throughout, and the result is a facility that clears the existing debt and puts capital back to work.”

Heather Mitchell, BDM at Recognise Bank added: “Every development has its own circumstances, and it is important that lenders are prepared to assess each case on its individual merits.

“Working closely with Justin and the team at Mortimer Street Capital, we were able to agree on a facility at 80% LTV that gave the developer the flexibility to move forward with its next projects.”

The transaction was led by Justin at Mortimer Street Capital, with Heather acting for Recognise Bank and Numan Sultan acting on the bank’s legal side.