June 30th, 2025
The financing will be used to support the acquisition and construction of a permitted development conversion project, delivering 46 flats.
The unnamed borrower, an SME housebuilder, secured the facility at 70% LTGDV.
“In a market that continues to be shaped by elevated interest rates and tighter conditions, it’s encouraging to see well-conceived schemes attracting appropriate lender appetite,” said Tim Clark, senior associate at LEXI (pictured above).
“This deal reflects both the resilience of residential development opportunities and the importance of structured finance in enabling delivery.”
Read the article in Development Finance Today here.
February 8th, 2021
United Trust Bank (UTB) has agreed to refinance a £2.7m apartment scheme with a £1.8m sales period loan.
The progress on Clearview Developments’ six-apartment project had been slightly set back by delays in material and fittings deliveries and utility connections caused by the Covid-19 restrictions.
One of the main obstacles was created by the original lender suspending the release of funds during the first pandemic lockdown and requiring a revaluation of the development.
This delay impacted the progression of the build once funding was eventually reinstated.
With completion delayed and the sales period shortened, the developer needed an extended term to market the new homes and achieve projected sales values.
Martin Cameron, structured finance underwriter at UTB, was approached by Sam Le Pard, co-founder of LEXI Finance after the original lender declined a request to extend the term.
LEXI Finance needed a quick decision and completion of the refinance in order to save its client from incurring default charges.
UTB quickly agreed the new 12-month facility, despite Clearview being a new customer.
“The pandemic has created many additional challenges for SME housebuilders with projects being delayed for various reasons beyond our control,” commented Jason Tema, director at Clearview Developments.
“Lenders show their true worth when problems occur, and Martin and the team at UTB have proven their ability and appetite by quickly agreeing and then completing this facility.”
Sam added: “UTB demonstrated its speed and flexibility on this — LEXI Finance’s first transaction with the bank. “On the back of its performance with Clearview, we were very comfortable immediately introducing further deals to UTB, which have also since proceeded to complete.”
Gerard Morgan Jackson, head of structured finance at UTB, said: “Although new to the bank, Jason and Sam were able to show us Clearview’s excellent track record of delivering and selling high-quality homes, and we were delighted to provide the funding it needed to ensure its ongoing success.
“We aim to build strong, long-term relationships with our customers and broker partners, supporting their growth through the ups and downs of the economic cycle.”
Read the original article in Development Finance Today here.
May 19th, 2020
Paragon Bank has supplied a funding package of £11.8m to EquaGroup for the acquisition of Ironbridge House in Hanwell, and its subsequent conversion into 57 residential apartments.
The west London development is a 28,000 sq ft commercial-to-residential conversion, expected to complete in January 2022.
This is the fourth deal the bank’s development finance team has supported over the past two and a half years, totalling 144 residential apartments.
Mike Tivey, director at EquaGroup, said: “EquaGroup has now worked with Paragon on a number of projects, primarily as result of their competitiveness, proactive team and effective process when establishing and completing the funding process.
“For Paragon to maintain this approach in a period where Covid-19 has impacted lending across the market is a credit to them and demonstrates an understanding that the supply of quality, affordable homes must continue.”
Adrian Reeves, relationship director at Paragon Development Finance, commented: “It’s great to support EquaGroup on another scheme, providing more affordable residential apartments to the market.
“In the unprecedented time we find ourselves in, being able to support our existing and new clients is only possible with the support of our highly experienced team and professional partners.”
EquaGroup was introduced to Paragon through LEXI Finance.
“LEXI Finance is delighted to support the completion of this project between Paragon and EquaGroup,” stated Nick Holding-Parsons, co-founder of LEXI Finance.
“The transaction became very complex as all parties adapted to the onset of government measures and the response to Covid-19.
“During this, Paragon not only stuck to their word with regard to the pricing and leverage of the original facility, they also showed great commerciality in the way they approached their decision making.”
Read the original article in Development Finance Today here.