Latest Cases Roundup, November
Fast turnaround: urgent case for experienced client
Borrower: Priory Asset Management LLP
Date: August 2017
Example of: Equity release for business purposes
Stuart Grundy needed to release equity to purchase a property at auction. This purchase was part of an agreement attached to a separate transaction, and numerous dependencies meant time was of the essence.
Underwriter Robin Turnbull and Head of Underwriting Phil Dabbs worked quickly and smoothly together with other parties to approve a 12-month facility in a very short timeframe. They were confident to lend because Mr Grundy has an excellent track record of advance and repayment with the same site as security.
The site, which he has owned since 2006, has planning permission and care operator agreements in place for a respite and development unit with 44 extra care bedrooms, 90 retirement flats and 15 self-contained lodges.
Support for a nine-dwelling development in an area in need of new housing
Developer: Permill Limited
Date: 4th August 2017
Example of: Site Assembly
An experienced developer - also an existing client - was looking to acquire 50-52 Albert Road North in Reigate, Surrey. The commercial site had an existing tenant, with a 10-year lease in place that expires in June 2022.
With the exchange successfully completed, a number of potential schemes for the site have been proposed. The primary plan is for nine new build homes with an estimated GDV of £5.2m. Planning pre-application meetings have been arranged to discuss proposals in depth with the council. Planning will be applied for in 2019 at the earliest, so that the three-year terms of any permissions granted will cover the period up until the lease ends in 2022. In the interim, the rent will be used to service the loan.
Support for an eight-dwelling development in an area in need of new housing
Location: Milton Keynes
Developer: Meg Trading 2 Ltd
Date: 3rd October 2017
Example of: Conversion
An existing client needed funds to complete an auction purchase after a competitive bidding process. The property, a substantial office building in a desirable location, has permitted development rights for conversion into 32 flats. The project will begin with the first two of three floors, and planning has been obtained to convert a further two floors.
Amicus has funded the whole development from day one, with draws for works and costs associated with planning for the extra floors to follow. Seven one bed and 25 two bed flats will be finished to a very high standard - they are expected to fetch a new build premium - and will then be marketed off plan. The client's excellent track record for completing and selling developments like this gave Amicus the confidence to commit to this project.