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Woodgate Developments Ltd have completed phase one of their property development scheme in Gosberton, securing a total £9m of funding from Shawbrook. The scheme will see a total of forty-six houses built, with over 20% being designated for affordable housing schemes. The loan was agreed at 65% loan to GDV* and 85% loan to cost** for a term of 36 months.
The developer, who was introduced to us by John Shevlane at Pilot Fish Finance, presented a complex, phased scheme that demanded a bespoke funding solution to achieve the client’s vision. Getting to the heart of the project, we understood the unique needs of the project and agreed a flexible funding package released in £3m tranches to support Woodgate through each phase of the development. This approach meant at the conclusion of phase one, 14 units have reached completion, with over 50% already sold.
We ensured they built a strong relationship with the developer and broker, and stayed close to the project throughout phase one. Our service-focussed approach involved site-visits to Gosberton from our Portfolio Manager and Relationship Director, and our consistent communication meant we were always on hand to provide pertinent information and answer the developer’s questions.
Due to this close relationship, we were aware that the project was ahead of schedule and a positive sales programme meant that the scheme had already generated some income to pay back the loan. Thanks to our flexible funding approach, funding for phase two were authorised for early release, ensuring the development’s progress kept ahead of schedule.
- John Shevlane, Director at Pilot Fish Finance
John Shevlane, Director at Pilot Fish Finance, said:
“It was a pleasure working with the Team at Shawbrook on this case. We recommended Shawbrook to this client because of the large size of the development, experience of the developer and Shawbrook’s flexibility to deal with a multi-phase funding approach.
Their flexible approach was proven midway through the scheme as Shawbrook were able to free up cash from property sales to enable the client to proceed with phase two of the development with no further arrangement fees.
The Relationship Director from Shawbrook has been on hand from initial site visit and for the majority of the drawdowns, resulting in him building detailed knowledge of the scheme. This has enabled our client to build a strong working relationship and made the process of gaining extended facilities much easier.”
Mark Hedley, Relationship Director at Shawbrook, said:
“We’re delighted on the progress of this development and we’ll be with the scheme all the way to completion, so are looking forward to seeing it come to life over the next two phases.
This scheme demonstrates our ability to successfully fund a complex, phased development. We were able to see what was needed from our client and come up with a bespoke solution that worked for all parties. We always aim to make the complex things, simple.
We’re excited to continue to build on our relationship with Woodgate Developments Ltd and Pilot Fish Finance to help deliver the best possible outcome for our valued customers."
*GDV = Gross Development Value: the projected value of a property development once it is completed.
**Loan to Cost = a metric that measures the ratio between the total loan amount and total cost of the project.
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