In light of its recent campaign, SPF Short Term Finance has completed a £2.8 million development deal.

The deal sprouted from a ten year relationship with the mainstream development lender. The client’s latest project was finished and under offer at £2.7 million, however a new opportunity had arose with a purchase price of £1.3 million.

The client needed £800,000 to acquire the new site and £800,000 to do the build but their existing lender would not entertain any further borrowing until exiting project sold and facility repaid.

 SPF arranged a £1.6 million loan to facilitate purchase and build costs of new project with 7.5 per cent per annum pricing. A small second charge was registered on the under offer property until it was sold. Upon sale, no reduction in loan facility was required as the value enhanced following planning approval.

 Following this a second opportunity arose to purchase the adjacent property. The lender extended the existing facility to £2.8 million to facilitate the acquisition of the adjacent property at identical terms.

 The second project is now underway leaving the total facility at £2.8 million against an expected GDV across the two projects of £ 5.4 million.

  While reflecting on the deal, Alex King CEO of SPF short term Finance said: "The point is that existing and longstanding relationships can mean nowt. The flexibility of the lender we used sponsored this experienced developer client through the sale, acquisition, planning and construction phases and were excellent in reassessing their loan exposure as the value of the assets changed through the process. The developer was able to take advantage of opportunities as they arose within a market that he knows inside out when his existing provider of funding came up short. A beautiful transaction."

 SPF Short Term Finance is planning a Christmas tom-bola incentive, rewarding the 10th caller with a prize. The packager recently sent emails to its broker base promoting some of its offerings of development finance.