The borrower, Sundial Properties Limited, required the facility to refinance an existing bridging loan with LendInvest for the purchase of the site, as well as to fund the conversion of the existing building into 11 apartments.
The previous bridging loan was agreed to buy the site before planning permission was granted in October 2020, as this was delayed due to a Covid backlog.
The £3.8m loan was agreed at 83% LTC and 65% LTGDV on a 24-month loan term.
The development is set to be completed in March 2022.
William Gray Muir, managing director at Sundial Properties Limited, said that after securing the bridging funding from the specialist lender, it seemed “the natural next step” to work with LendInvest again for the development facility.
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“The funding request was complex because of the structure of the acquisition , but LendInvest was always proactive in finding practical solutions to the unusual features of the purchase.”
“I think a notable feature of LendInvest is the experience and approachability of all of their staff, which has made completing the acquisition during such a difficult time remarkably stress free.
“Staff made the effort to understand our business and track record and were prepared to structure the transaction to suit our specific needs and experience.”
James Russell, relationship director at LendInvest, commented: “Sundial approached us with this funding proposal which required a quick turnaround to secure the purchase prior to planning being granted, and then the ability to leverage off the value of the property with planning when it came time to transition to development funding.
“Peter McDermid, our Scotland-based BDM, was able to step up and provide the bridging [facility] in a quick turnaround and from there, I commenced work on the development funding by using all the same professional reports provided for the bridging loan.
“We recognised Sundial Properties as a high-calibre developer in the Edinburgh market and, given their borrowing history, it was a chance for us to fund another quality developer; we are hoping this will lead to a long, successful relationship."