The facility was required to convert and extend an office building the site into apartments
LendInvest has completed a £3.8m development finance loan for IPE Developments.
The facility was required to assist with the purchase of an office building in Essex, with the aim to convert and extend the site into 16 apartments.
IPE, a repeat borrower at LendInvest, approached the team to step in and help with the funding which was quickly needed, as the developer’s initial deal with a previous lender fell through.
The LendInvest team was able to complete the loan within three weeks in order to meet the borrower’s deadline.
The facility was agreed at 83% LTC and 63% LTGDV, with a 7.98% per annum interest rate on a 20-month loan term.
The project is due to reach practical completion in early 2022.
Tom Madden, director for structured property finance at LendInvest, said: When we were approached by IPE, we were really keen to help, having lent to them on a number of occasions over the last few years.
They were already a significant way through the funding process with another lender, which disappointingly changed its terms at such a late stage, he said.
With only a few weeks until the contractual completion date on their acquisition and a significant deposit at stake, we knew the pressure was on, but we quickly sought internal credit approval and got the support of our professionals to meet the timeframes, Madden said.
He added that, as a development lender, LendInvest prided itself on being able to deliver what it said it could do from the outset and that this was a great example of that.
Joshua Rueban, developments director at IPE Developments, commented: When you have to move quickly with a project, it’s more important than ever to have a lender you can rely on to provide quality finance and deliver within your required timeframe.
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