The three-storey, £11.3m GDV project — which includes 14 luxury two- and three-bedroom apartments and ground-floor commercial space — will be built on the site of the former Harlyn Inn Hotel situated adjacent to Harlyn Bay Beach.
The scheme, which was introduced to the bank by specialist debt advisory firm Brotherton Real Estate in October 2020, is being undertaken by developer Harrington Homes.
The client had a short deadline for the purchase of the site, with completion due to take place in early November.
Due to challenges presented by Covid-19, it wasn’t possible to undertake a site meeting prior to giving a credit decision within the tight timescales.
However, Mark Pannell, senior manager of property development at United Trust Bank, arranged Zoom meetings with Robert Kleinman, CFO at Brotherton Real Estate, and Harrington Homes’ principals to discuss and agree a funding package.
Although Harrington Homes is a new UTB customer, it has extensive development experience and a strong track record of delivering successful, high-specification projects around the South West.
Mark presented the proposal to UTB’s credit committee — which is currently meeting daily via video conference — and approval was quickly given to provide the £6.18m required, at circa 55% LTGDV, to cover the balance of the site purchase, construction costs, professional fees, and CIL/Section 106 obligations.
An extended repayment term at 23 months was also agreed to provide Harrington Homes with greater flexibility should the pandemic create disruption to the construction timetable.
- Brickflow aims to improve development lenders' conversion rates and make marginal sites profitable
- UTB refinances £34m luxury seafront development
- United Trust Bank provides £4.6m loan for Milton Keynes housing development
“Harrington Homes has established a strong reputation for delivering high quality developments, and I’m delighted that UTB will be providing the funding to create these superb homes in a stunning location,” said Mark.
“We had to move quickly on this deal and Brotherton’s involvement was crucial to us getting all the information we needed when we needed it.
“It was an excellent example of developer, introducer and lender working in unison to meet a challenging deadline.
“With around 40 buyers already showing interest in the apartments, I’m sure this will be another successful development for Harrington Homes and the bank.”
Demolition works were underway within two weeks of the completion of the site acquisition and the first apartments are expected to be released for sale in Easter 2021.
Harrington Homes is said to have already received considerable interest in the new properties.
Gareth Hughes, director at Harrington Homes (SW) Ltd, commented: “Although we have benefitted from Brotherton’s assistance on several occasions, this is the first development where UTB has provided the funding, and I hope this will be the start of a long and mutually beneficial relationship.”
Robert added: “Mark and the United Trust Bank team pulled out all the stops to provide a quick decision on this deal and have the funds available within around six weeks of our first conversations.
“They’re a pleasure to work with and are always keen to back good developers like Harrington Homes that are providing high quality new homes where there’s demand.”