Assetz Capital has completed a £6.25 million development facility to support Marie Thomas Homes with a new 22-unit residential scheme in Lancaster. The funding supports a project designed to deliver a mix of family housing and affordable homes for the local community.
The development will provide eight different types of accommodation, ranging from two and five-bedroom houses to two one-bedroom apartments. Thirty % of the site is allocated to affordable housing.
The facility is structured at 71% LTGDV and includes the recycling of £200,000 of sales proceeds. Assetz Capital’s funding also allows Marie Thomas Homes to defer part of its equity contribution into the construction phase, easing cash flow pressures during the early stages of the build.
Key elements of the funding package include:
A £6.25 million facility structured at 71% LTGDV.
Recycling of £200,000 in sales proceeds back into the scheme.
Deferred equity contribution to support early-stage cash flow.
Funding for a 22-unit residential development in Lancaster.
“In what has been an incredibly challenging market, we approached Assetz Capital to provide a stretch senior facility after our proposed mezzanine lender was not showing signs of delivering,” said Mark Whelan, managing director at Marie Thomas Homes.
“As is always the case in a tougher market, credit teams are more thorough in their assessment, but Assetz worked with us pragmatically to reach a workable solution. We’ve spent three years securing planning in this desirable area, and we’re looking forward to delivering an attractive development that reflects our family business’s focus on building quality homes that people genuinely aspire to live in.”
Mark Roberts, relationship director at Assetz Capital (pictured), described the transaction as an example of the lender’s ability to support schemes that fall outside more restrictive criteria. “This deal evidences our capability to structure development facilities that would sit outside many other lenders’ criteria,” he said. “We’ve provided a £6.25m facility at 71% LTGDV for a 22-unit scheme to a well-established family development firm, which sits right in our sweet spot for supporting SME housebuilders.”
“Alongside the stretch senior leverage, we’re also recycling £200,000 of sales proceeds and enabling the developer to defer a portion of the equity contribution into the construction element of the project,” he added.
“That early-stage flexibility can make a material difference to cash flow on site. It’s a well-designed scheme delivering quality family homes to the local community, and I look forward to working closely with Mark and the team over the coming months to deliver a positive outcome for all parties.”
Devbrok’s Dave Symondson facilitated the funding arrangement.
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