The 24-month facility was used to refinance the borrower’s existing debt and help it complete the development of five terraced ‘shell houses’ — which have the walls, plastering, wiring, and plumbing complete and ready for homeowners to fit out.
The bespoke properties can be customised to fit any buyer’s needs and preferences.
The challenge for the developer was finding funding that could accommodate all scenarios potential purchasers may want.
Fiduciam provided a flexible, bespoke development facility that enabled the client to pull down funding as required, covering all options from fully fitting out the houses to converting the houses to apartments.
The fit-for-purpose funding structure offered the developer flexibility to find the best and most profitable sale options, both for them and the ultimate homeowner.
- Property investors face 'huge risk' of stranded assets if they fail to decarbonise
- Fiduciam grants £5m loan for Manchester mixed-use scheme
- Fiduciam completes over £22m of CBILS loans in October
Ryan Parrett, business development manager at Fiduciam, said: "This was an unusual deal that required a number of flexible solutions to match the innovation and flexibility that Unboxed Homes was providing for its end customers.
“We could see the vision that Gus [Zogolovitch, managing director at Unboxed Homes] wanted to achieve and enjoyed putting together a solution that helped him to achieve that."
Gus added: “The majority of housing is poorly designed and badly built.
“I believe that if more of us had a say in the creation of our own homes, we would end up with better designed homes of better quality, that are better value and what’s more, better for the environment.
“Fiduciam enabled us to achieve that vision on this development.
“It worked closely with us to provide a flexible funding solution that not only let us manage the development in the way that we felt was important, but also in the way that our homebuyers wanted.”