The 18-month loan was agreed alongside an additional £1.49m bridging loan secured against the former car showroom on the same title, with both loans needing to be drawn on the same day.

While the sale of the commercial asset to a REIT had been agreed, the sale had not concluded, and therefore the bridging facility enabled the transaction to go ahead, while redeeming another bridging lender.

The development loan enables the borrower to construct seven five-bed townhouses on the site, a project that has an estimated GDV of £8.57m.

While the scheme is a traditional build using brick/block with a cut timber on mass fill strip concrete foundations, initial complications had to be overcome, including detailed ground investigation works and the timing of nearby highway works being completed.

While the borrower is experienced, it is the first time they are delivering a development of this scale by themselves.

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Shahil Kotecha, CEO at Pivot, said: “This is exactly the type of transaction that Pivot is set up to offer, supporting a client with significant experience working for a national housebuilder with his own venture.

“Our team were able to utilise their planning, construction and general development experience to full effect to get the deal over the line.”

The loan was brokered by Irwell Mortgages, and its director, Lee Neenan, said he was grateful for Pivot’s expertise.

“Pivot’s attention to detail, professionalism and quick thinking has really helped structure this in the best possible way for my client,” Lee commented.

“It has not been the most straightforward of transactions, however, more importantly, Pivot adopted a flexible approach to help deliver the client’s desired outcome, which has been nothing short of brilliant.”

The valuation was conducted by Capital Value Surveyors, project monitoring by Cluttons, and legals by Field Fisher.