Shawbrook has provided a £4.5m development finance facility to Arc X Developments for the acquisition and development of six detached homes on a former stone quarry site in Combe Down, around 2.5km from Bath city centre.
The 21-month facility supports both the land purchase and construction of the secluded woodland site. The completed scheme carries an expected gross development value (GDV) of approximately £6.75m.
Arc X Developments is led by three experienced developers with a track record across Bath and Somerset. The team required a lender able to accommodate more complex arrangements around the land acquisition and offer flexibility during the construction phase. South West Business Finance introduced the deal to Shawbrook.
Shawbrook structured the facility at £4.5m, providing up to 85% loan-to-cost (LTC) with day-one funding capability to support cash flow and deposit payments as the development progresses. The 21-month term breaks down as 15 months for construction and a further six months for sales.
“This site came with some unusual arrangements around the acquisition, so we needed a lender that could be flexible rather than take a one-size-fits-all approach,” said Alex Feilden-Cook, director at Arc X Developments. “Shawbrook and South West Business Finance took the time to understand what we were trying to achieve and put funding in place that works for the project as it progresses.”
Greg Pescott, relationship director, development finance at Shawbrook, noted the site’s distinctive character alongside the structuring work required to get the deal done.
“This is a fascinating site with a lot of character, and the plans make good use of its secluded woodland setting while delivering six new homes in a sought-after part of Bath,” he said.
“The acquisition structure was a little different to a typical development, so the funding needed to reflect that. Arc X has an experienced team behind the project and a clear plan for the site, and we’re looking forward to seeing the development take shape.”
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