The specialist distributor was able to resolve a legal dispute — which had to be cleared up prior to the completion of the loan — and secured the development exit funding for the client, who initially built a block of apartments using development finance which was due for redemption.
Some of the apartments were also due to be sold to a housing association, but the sales were delayed and the client faced the prospect of defaulting with the development lender as a result.
- DFT roundtable: What areas of property development finance finance are most underserved?
- Mortgage Sleep Out raises £110,000 for EYH charity
- Castle Trust sees PBSA sector as 'natural extension' to its offering in the future
Castle Trust structured two simultaneous bridging loans, which provided the client with a way of managing their cash flow until the housing association sales could go through and longer-term finance could be sourced.
“This case is a really excellent example of how working with the right partner can make the seemingly impossible, completely achievable and deliver a great outcome for the client,” said Rob Jupp, group CEO at Brightstar Financial and Sirius Property Finance (pictured above).
Barry Searle, managing director of mortgages at Castle Trust, added: “The client faced a real problem, but we were able to work together with Brightstar to get them out of a hole and deliver a solution that will help them to achieve a successful result for their development.”