Funding allows developer to refinance and progress to next stage of the development.
Recognise Bank has announced the completion of a £2.3 million bridging loan deal on an eco-housing development in Cambridgeshire.
The Bank supported adviser Jason Caprioli, Lending Director at Kingswood Associates, by providing the funding for an experienced property developer. The bridging loan meant the client could refinance an existing acquisition loan in order to move on to the second phase of the overall development.
The 12-month bridging loan for £2.3m was fixed at 9.6% p.a. with a loan-to-value (LTV) of 65%. Despite challenges with the multiple banks involved in what was a global transaction, Recognise Bank completed the deal to meet tight timescales.
The project in Cambridgeshire is a green housing development of 19 environmentally friendly homes, plus the refurbishment of an existing lodge on the site.
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. Going into 2022 it’s great to see a new bank able to support ever larger opportunities with its growth strategy and appetite.”
Shami Sharma, Business Development Manager 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 experienced 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.”
Recognise Bank was created to serve SMEs that are being ignored by the big banks, and already offers unregulated Commercial Mortgages, Bridging Loans, Working Capital Loans and Professional Practice Loans. The bank has a network of Business Development Managers in hubs in London, Birmingham, Manchester and Leeds, backed up by the latest cloud-based technology to provide quick lending decisions and fast access to funds.