Ultmate Capital rescues 15-strong development

Ultimate Capital rescues 15-strong development

People’s memories aren’t great. It’s very easy to forget what the residential property market was like just 12 months ago .

People’s memories aren’t great. It’s very easy to forget what the residential property market was like just 12 months ago.

With the exception of London and pockets of the South East, obtaining development finance remains extremely difficult. A year ago it was far worse. Although we didn’t know at the time, we were just seeing some “green shoots” of what will certainly be a long and protracted recovery.

Back then, experienced developer, Fomo Developments Limited, had started building 15 contemporary designed luxury properties in a desirable area of Nottingham. It was a brave move but one that has proved to be inspired.

The 4.26 acre site is very well located but it stands on the side of a steep hill and was covered in trees, a number of which were protected. It was the kind of site that would have deterred lesser developers who would have worried about the complexities attached to it.

Despite the issues, Fomo Developments had purchased the site at a competitive price and had de-risked it, having cleared it and built most of the infrastructure and substructures for the majority of the properties. With the construction risks now significantly reduced, in a normal market, it should have been easy to fund. Unfortunately, as Fomo found to their cost, we are not in a normal market and finance was, and still is, difficult to obtain.
Richard Denbow of Fomo Developments said: “We spoke to many lenders and most made the right noises, but when push came to shove they didn’t deliver. This caused serious delays that put the site and the business at risk. We had to find a lender that understood development and would deliver fast.”
Fomo Developments were introduced to Ultimate Capital via a broker and were able to provide an 18 month development facility within a matter of weeks.

Mike Shearn, COO at Ultimate commented: “The Fomo deal is typical of the kind of project we fund. We quickly understand our customers’ problems and deliver a bespoke solution: fast.”
A year on and the site is in a healthy state, the market has improved, and Fomo Developments is on course to complete a successful project and realise a healthy profit.

Richard Denbow continued: “Quite simply Ultimate delivered on all levels, from initial contact to drawdown of the loan. They understood our needs, ensured our tight timescales were met and were completely flexible throughout the project. We could have asked no more from a funding partner. My only regret is that we didn’t go to them earlier!”

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