Plymouth-based commercial finance experts Balance for Business have secured a £4.36 million funding package to support the completion and sale of a 14-apartment luxury seafront development in Paignton, Devon.
Acting for an established Devon development company, Balance for Business arranged a 12-month ‘finish and exit’ facility with Octane Capital. The deal refinances the project’s existing development facility and provides the funding required to complete the part-finished scheme.
The development at Keysfield Road comprises a collection of two and three-bedroom apartments arranged over four floors. The building is already wind and watertight, with the majority of apartments completed to a high specification.
The funding package includes an initial advance of approximately £4 million, together with a £360,000 tranche to cover the remaining completion costs. The outstanding work, consisting principally of non-structural fit-out and external works, is expected to take between eight and 12 weeks.
The development is being marketed by Connells and five apartments have already been reserved for a combined value of £2.06 million. Four have attracted offers at or above the asking price, providing early evidence of strong demand for the scheme.
The facility will reduce as apartments are sold, while allowing surplus proceeds from sales to be returned to the developer.
The deal was structured by Dan Place, Business Development Manager at Balance for Business, working alongside Octane Capital and Michelmores as the client’s legal advisers.
The client has a strong track record of successfully delivering residential and commercial developments across Torbay and Plymouth.
Commenting on the deal, Dan Place said: “This transaction is a great reflection of our team’s expertise, commitment and tenacity. From the outset, we were determined to find a solution and structure a complex deal around the client’s specific requirements.
“Octane Capital was excellent to deal with from start to finish. The benefit of working with a lender that is proactive, highly communicative and willing to think creatively when required is invaluable. Together, we have secured the funding our client needs to complete and successfully exit what promises to be an outstanding development.”
Francesca Woodhouse, Senior Business Development Manager at Octane Capital, said: “What made this deal work was our flexibility and willingness to understand the transaction in detail. We took the time to understand the development, the work already completed and the sales secured, and structured the facility around the project’s specific needs.
“Working closely with the Balance for Business team, who shared our commitment to finding the right solution, made the process efficient and collaborative, ultimately delivering a successful outcome for all parties.”
Zilah Nelson, Associate at Michelmores, said: “This transaction was a fantastic opportunity to work alongside a great team of experts to facilitate a lending solution. Dan and his team at Balance for Business were always proactive and extremely helpful in getting the project over the line within the required timeframe.
“Octane Capital was also a great lender to work with. They clearly understood our client’s need and desire to complete the development and were quick to turn the deal around.”
Balance for Business specialises in commercial finance and has secured funding worth well over £1 billion for its clients. Its services include business loans, buy-to-let mortgages, bridging loans, peer-to-peer lending, invoice finance and asset finance.
As an independent broker rather than a principal lender, Balance for Business has access to a broad range of funding options and can often find solutions where traditional banks are unable to help.
