Reward Finance Group has provided a £150,000 bridging loan for Firgrove Holdings to help it complete its latest scheme, developing approximately £3.5m of office space in Aldresford, Hampshire.
The loan is at 35% LTV and has a 12-month term, using external assets as leverage. Firgrove Holdings operates a range of companies within the land, property, funding and development sectors.
The firm needed the money to cover cover planning costs, architects’ fees, environmental reports, legal fees and working capital for the development which it calls the ‘The Dean’.
The development has been part-sold for £2.8m, subject to planning consent being approved.
Calvin Dexter, who brokered the deal, said: “Naturally Firgrove Holdings was keen to obtain the planning, as soon as possible, so that they could realise the £2.8m. However, its bank was reluctant to provide the funds.
“Having worked with Reward Finance Group on many occasions I knew that short-term loans, such as this, was an area in which they excelled.
“I was confident they would take a more pragmatic view of the deal, which they did quickly, allowing the company to move the planning process forward.”
Parisa Lian, business development director at Reward Finance Group, added: “When we were approached by Calvin, he informed us why it was urgent for the funding to be arranged.
“I met with the managing director of Firgrove Holdings, Mike Gould, and the rest of the team, took a tour of their previous projects, which are of high quality, and had a look around the new development.
“I was impressed with the way they operate and, using external assets as leverage we were able to move the deal forward by providing the company with the £150,000 needed within a short time frame.”
As well as building existing offices on the site, which are now occupied, the company has lodged plans to build a further six units to complete the scheme.
Mike Gould said: “Having faced an uphill struggle to get the funding from our existing bank I was becoming very frustrated and somewhat anxious. If we didn’t get the money to complete the planning process, we could have possibly lost the deal.
“Both Calvin and Parisa quickly grasped the situation, saw the urgency and delivered the short-term funds without making us ‘jump through hoops’.”