Sell-out success for long-term Amicus Property Finance client
Location: Romford, Essex
Developer: Smith Homes 6 Ltd
Date: January 2017
Example of: Development funding
To provide funding of LTV 66% of day 1 at £8.4m against a GDV of £30m
A long-term client of Amicus purchased two interconnecting four-storey office buildings, and got permission for a change of use from class B1 to C3 for 115 new flats. The developer needed a flexible schedule; they wanted to draw down monthly for constant cashflow throughout the development.
Amicus has a strong working relationship with Robert Sterling, the surveying firm involved, having supported a number of major development projects in London and the South East over the last 12 months. Amicus underwriter Lesley Saint worked closely with surveying firm Robert Sterling who had carried out the initial valuation. Together they agreed to a schedule of monthly valuations. With this assurance in place, Amicus approved a funding line with an initial draw down and an ongoing cashflow facility.
90 of 115 flats were completed in the first phase. The second phase began early in 2017. On the launch weekend in November 2016, all 115 apartments were sold off plan, and the loan was fully repaid by January 2017, well before the end of phase 2. A fantastic result for everyone involved.
The Verve development project is an excellent example of how the Amicus Property Finance Stakeholder initiative drives an increasing number of their projects to a very satisfactory conclusion. We have got to know Barry Merner at Smith Homes 6 Ltd, and Amicus's in house QS Cedric Houghton-Brown very well during previous projects and it is a pleasure to see, what had the potential to be a complicated project, completed on time because of the proactive collaboration of all parties.
Cases of this type really emphasise the benefit of the lender having their own QS who is able to project manage the demands of the developer and the requirements of the surveyor/valuer. Amicus Property Finance support the governments housing policy and Robert Stirling were delighted to play their part in achieving the release of 115 units in only 90 days from the day of application.
Arwel Griffith, Robert Sterling