Bridging finance is a good option for borrowers looking for more flexibility with their funding, if, for example, they are managing a number of different property projects at one time.
For an experienced property developer working on a major green housing development in Cambridgeshire, a Recognise Bank bridging loan helped them progress with the overall development.
Supporting the developer’s adviser, Kingswood Associates, we provided the client with a £2.3 million bridging loan that enabled them to refinance the existing acquisition loan in order to move on to second phase of the development, 19 environmentally friendly homes, plus the refurbishment of an existing lodge on the site.
The 12-month bridging loan had a loan-to-value (LTV) of 65% and was fixed at 9.6% p.a. Despite challenges with the multiple banks involved in the global transaction, we completed the deal to meet tight timescales set by the client
Jason Caprioli, Lending Director at Kingswood Associates, said: “This is an exciting project and Recognise Bank was able to structure and support our client’s green-centred development in Cambridgeshire. The key to success was its team, who combined experience, dynamism, speed and flexibility.
“While it was our first engagement with Recognise Bank, we can’t wait to work with the bank again. It’s great to see a new bank able to support ever larger opportunities with its growth strategy and appetite.”
Shami Sharma, Business Development for London at Recognise Bank, said: “This was our first case with Kingswood Associates and Jason worked hard with us to meet his client’s requirements. It was a complex deal, but we could see the developer was an experienced player in the market and we came up with a loan structure that worked for all parties. It clearly shows how hard we will work to get complicated cases over the line.”
Featured customer stories
Here is a selection of lending stories that explain how we have helped businesses and what our clients had to say about us. Have a read to find out how we could help your business.
Recognise Bank secures loan for Cardiff office investment
Two existing clients, Gareth Morgan and Jason Jones, approached us looking to acquire a three-story office building located in Cardiff Gate Business Park.
Recognise helps property investor rejuvenate local high street
Sam was a prospective commercial landlord looking to invest in the area near where he grew up, North Cheshire, by buying a commercial premises that was home to two successful businesses.
Supporting business cashflow during the pandemic
The Professional Indemnity Insurance market has hardened considerably over recent years with fewer insurers in the market and professional design practices in the property and construction sectors seeing huge hikes in the cost of their premiums over the last three years.