Positive completes car park conversion deal

Positive completes car park conversion deal



Positive Commercial Finance has completed a bridging loan for a property developer to purchase a car park with the intention of converting it into residential properties..


Positive Commercial Finance has completed a bridging loan for a property developer to purchase a car park with the intention of converting it into residential properties.

The developer, who has recently completed a similar project, plans to convert the 40-space car park in the West Midlands into six townhouses with integrated garages.

Although planning permission has yet to be granted, the local planning authority has verbally given the project the ‘green light’, so the lender was happy for the deal to move ahead.

The land was acquired using a bridging loan at 50% LTV for a term of six months, which should give the developer enough time to gain planning consent before refinancing to a development facility.

John Waddicker, Director at Positive Commercial Finance, said: “Our client was able to agree an attractive price for the speculative purchase of the site, and remains very confident that planning consent for the residential development will be forthcoming.

“The lender used the “as is” value of the site, so at 50% loan to value, it provides sufficient comfort.

“It seems likely that the bridging lender will also go on to provide the development facility, so a good deal for all involved.”

Last month, Development Finance Today reported that more than £1bn worth of residential land is locked up in London car parks, although any plans to convert them may be met with objections.

 



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