The client required the loan to complete an option agreement on the site — a former bowling green in the Stoneygate suburb — and fund the first phase of the project.
Out of the total sum lent, £500,000 was used for the site purchase, with the remaining funds allocated to cover the build costs for phase one, which consists of the construction of three detached houses.
The initial phase will also allow for the installation of services and infrastructure to the remaining build plots on the site.
The £2m facility, which includes fees added into it and interest rolled up, was agreed at 83% LTC and 63% LTGDV.
The loan term is 15 months for phase one, with an agreement to roll into phase two.
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“Since launching, we’ve established a name and a brand that is synonymous with quality in the development finance sector,” said Ashley Ilsen, CEO at Magnet Capital.
“It’s great to see growing demand for an experienced development finance lender that is able to offer genuine flexibility in our facilities.”
The company is now focusing on widening its market reach.
Sam Howard, managing director at Magnet Capital, commented: “Magnet Capital’s success has been built upon our personal approach and our borrower's direct access to the key decision makers, [and] this project is a great example of this.
“Our close and regular contact with the client and decades of experience in dealing with complex sites enabled us to structure a deal that met the client's specific requirements, resulting in it being closed successfully.
“Our hands-on service is the same, whether it is a one-house scheme or a large multi-phased project.”