The bank’s structured finance division was approached to refinance the development of 26 residential apartments with the ultimate beneficial owner being an offshore family trust.
The existing high loan-to-cost lender was funding the construction of the development and UTB’s original offer of funding was based on the development reaching practical completion.
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However, due to delays with construction, UTB was asked to vary the terms and to step in before the development had fully reached practical completion.
UTB’s structured finance team was able to ascertain from site inspections and professional reports that the development had been largely de-risked and that effectively the remaining works comprised final fitting out and snagging.
The lender agreed to progress and amended the proposal.
Once it completed the due diligence on the customer, the facility – provided at 67% LTV – was made available for drawdown before practical completion with a residual sum to meet the outstanding construction costs.
The exit will come from the sales of the completed apartments within the term of the facility.
Pictured above: Gerard Morgan Jackson, head of structured finance at UTB