Specialist lender United Trust Bank and Iron Bridge Finance, the London-based mezzanine development lender, have jointly funded a multi-unit development in Hemel Hempstead, Hertfordshire.
The £14.5m project has been supported by a combined debt package of £10.5m with UTB’s senior debt facility at £8.5m and Iron Bridge providing £2m of mezzanine for the developer to acquire and develop the site.
Paul Flannery, property development manager at United Trust Bank said: “We were very happy to support this project by a highly regarded and experienced developer to provide much needed new homes for the rented sector in Hemel Hempstead.
“Working closely with Iron Bridge and PIA Financial Group we were able to structure funding which suited the developer’s requirements and we look forward to the delivery of another successful project in partnership with the team at Iron Bridge.”
Iron Bridge’s Martin Gilsenan added: “We enjoy an excellent relationship with UTB and it was satisfying to see our combined facility enable the client to get to 85% loan to cost, therefore retaining sufficient equity to pursue other opportunities.
“The dialogue between ourselves UTB and PIA Financial Group was first-class and we were very impressed with the quality and track record of the client.”
The property which is a vacant five storey office building has planning consent for 64 residential units, which will be rented to a housing association.
The developer, who has previously borrowed from UTB, has 15 years’ experience in the sector and has previously developed over 1,000 units which have been rented tohousing associations.
The developer was advised by property finance experts PIA Financial Group who were mandated to source both the senior and mezzanine debt on the deal.