{"id":14222,"date":"2021-02-04T13:56:06","date_gmt":"2021-02-04T05:56:06","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/uncategorized-ch\/bridging-and-development-finance-for-26-million-gdv-project"},"modified":"2023-09-14T16:21:26","modified_gmt":"2023-09-14T08:21:26","slug":"bridging-and-development-finance-for-26-million-gdv-project","status":"publish","type":"post","link":"https:\/\/backup.articusfinance.com\/ch\/case-studies\/bridging-and-development-finance-for-26-million-gdv-project","title":{"rendered":"Bridging and development finance for \u00a326 million GDV project"},"content":{"rendered":"<p style=\"font-size: 15px;\"><span style=\"font-family: Verdana, Geneva, sans-serif; color: #134f5c;\"><strong>The case in brief<\/strong><\/span><\/p>\n<p><!--more--><\/p>\n<ul>\n<li aria-level=\"1\">Finance needed to buy site without planning permission<\/li>\n<li aria-level=\"1\">Bridging finance for development site purchase<\/li>\n<li aria-level=\"1\">Converted to development finance<\/li>\n<li aria-level=\"1\">90% LTC product<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">When a developer is presented with an excellent opportunity, the ability to move fast is important. But without pre-existing planning permission on a site, it can be almost impossible to secure the right development finance. Fortunately \u2013 as this case study demonstrates \u2013 it\u2019s possible to overcome these barriers, taking out bridging finance for development site purchase and then refinancing as required.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 16px; color: #134f5c;\"><strong>Our client<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">The Articus Finance team regularly works with experienced developers carrying out complex, high-value projects. Our client in this instance was a UK developer looking to convert an old office block into residential flats. The site was currently valued at \u00a35 million, but after expected build costs of \u00a310 million, the developer expected a very strong profit with a GDV of \u00a326 million.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">However, there was a hurdle in the way. Our client needed to move quickly to secure the project \u2013 but the site did not currently have planning permission, meaning our client was unable to secure <a href=\"https:\/\/backup.articusfinance.com\/ch\/development-finance\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">development finance<\/span><\/a>. Since securing the relevant permissions can be a matter of weeks or even months, our client needed an interim solution to proceed with the purchase, ensuring they didn\u2019t miss out on the opportunity at hand.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 16px; color: #134f5c;\"><strong>Our solution\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">To resolve this, we helped this developer source <a href=\"https:\/\/backup.articusfinance.com\/ch\/bridging-loans\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">bridging finance<\/span><\/a> to purchase the site, at 70% LTV. This meant our client was able to proceed with the purchase and with securing the relevant planning permissions.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">After this stage had been completed successfully, we were able to convert his bridging loan into an appropriate development product at 90% loan to cost (LTC). This was an excellent outcome for the client, ensuring they were able to take advantage of the fantastic opportunity presented by this project.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\"><em>Whether you need a <\/em><span style=\"color: #45818e;\"><a style=\"font-style: normal; text-decoration: underline; color: #45818e;\" href=\"https:\/\/backup.articusfinance.com\/ch\/bridging-loans\">fast bridging solution<\/a><\/span><em> or a<\/em><span style=\"font-style: normal;\"> dedicated development finance product, our <a href=\"https:\/\/backup.articusfinance.com\/ch\/our-team\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">experienced brokers can help<\/span><\/a>.<\/span> <a style=\"font-style: normal; text-decoration: underline;\" href=\"https:\/\/backup.articusfinance.com\/ch\/about\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #45818e; text-decoration: underline;\">Learn more about our offering<\/span><\/a><em>. <\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The case in brief<\/p>\n","protected":false},"author":1,"featured_media":14223,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[70],"tags":[],"class_list":["post-14222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies"],"acf":[],"jetpack_featured_media_url":"https:\/\/backup.articusfinance.com\/wp-content\/uploads\/2023\/01\/gdv-project-finance.jpg","_links":{"self":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/comments?post=14222"}],"version-history":[{"count":1,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14222\/revisions"}],"predecessor-version":[{"id":20980,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/posts\/14222\/revisions\/20980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/media\/14223"}],"wp:attachment":[{"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/media?parent=14222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/categories?post=14222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/ch\/wp-json\/wp\/v2\/tags?post=14222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}