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.”