Pivot has completed a £6.6m development finance facility at Oast Farm in Hever, Kent, funding 13 design-led homes across a mix of house types and sizes on a former agricultural site.
The deal refinances an existing Pivot bridging loan on the land and provides funding through to practical completion and sale, keeping the scheme under a single lender relationship throughout. The facility runs for 20 months at 70% LTGDV.
The site, on the edge of Hever near Edenbridge, currently comprises former agricultural barns, all of which are to be demolished. Alongside the residential units, the scheme includes a small lake as an amenity. Rail services to London Bridge run in around 45 minutes, and the site is close to a number of well-regarded schools.
The borrower is Highbrook, a Kent-based residential developer. Development management is being handled by XP Property, with Total Homes appointed as contractor.
The transaction was led by Michael Tarateo, relationship manager at Pivot, and Stefan Pahontu, senior credit manager.
“I first met Highbrook in person at the open day for their Stonebridge development, which has since gone on to win the RICS South East Residential Development award, and our funding relationship began from there,” said Tarateo.
“Since then, Highbrook’s principal has brought together award-winning partners to build a development model that is both sustainable and robust. We are pleased to support Highbrook’s continued growth and look forward to further projects together.”
Pahontu, who underwrote the original land bridge in February, noted the earlier groundwork made for a faster transition into the development phase. “Having underwritten the land in February, we already knew the site, the sponsor and part of the team, so we could move quickly when Harry was ready to start construction,” he said.
“Rather than applying a generic development model, we structured the facility around how the scheme will actually be delivered and the specific needs of the borrower.”
The valuation was carried out by Strutt & Parker, with MDA Consulting acting as monitoring surveyor. Dovetail Law acted for Pivot on the legal side. The borrower was represented by Stefan Canavan of Willow Isle Capital.
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