United Trust Bank (UTB) Property Development Finance has provided a £5m development bridge to McLaren Property, supporting plans for a £74m GDV PBSA scheme on the University of Leeds campus.
Ardant Partners introduced the 12-month development bridge, which lets McLaren refinance its existing acquisition loan and release additional equity. The developer is progressing plans to redevelop Springfield House, which sits on the main campus next to Leeds General Infirmary.
The deal terms:
- £5m development bridge
- £8m current value, with potential £74m GDV
- 63% LTV
- 12-month term
McLaren Property, McLaren Living and McLaren Regeneration have a combined pipeline of £4.6bn across 36 sites and 12,000 homes. McLaren Property acquired the Grade II listed former office and medical facility in 2023, then secured planning consent for 334 student beds.
It is now exploring changes to the consented scheme, covering the building’s layout and the student offer, with the aim of raising long-term value. On completion, the scheme is expected to deliver a GDV of around £74m.
UTB’s property development team structured the bridge, which equates to 63% LTV against the site’s current £8m value. The facility gives McLaren more time to progress those proposals and weigh the next stage, including a forward-funding partner or development finance to take the scheme through construction.
“This exciting scheme has enormous potential and will deliver much-needed high-quality student accommodation to the area,” said James McMillan, finance director at McLaren Property.
“With the original planning consent in place, we wanted additional time to look carefully at how we could further optimise the scheme before moving into the development phase. The facility from United Trust Bank gives us the flexibility to progress those plans and consider the most appropriate funding route for the next stage.”
“The key requirement here was finding a lender which understood both the current position and the considerable potential of the site,” explained Alex Maxwell-Scott, co-founder and partner at Ardant Partners.
“UTB quickly grasped what the client was looking to achieve and structured a suitable facility. Daniel and the UTB team took a pragmatic and commercial approach throughout and worked closely with us to get the refinance completed smoothly.”
“This is a great example of where a development bridge can give an experienced developer the time and flexibility they need to maximise the potential of a site rather than rushing into the next stage of a project,” said Daniel Carlisle, senior director, property development at United Trust Bank.
“Our facility gives them the breathing space to finesse those plans and determine the best route forward.”
“It’s also exactly the sort of transaction our new Real Estate Finance division was created to support,” he noted. “The breadth of our expertise allows us to look at what a customer is ultimately trying to achieve and provide appropriate funding across different stages of the project lifecycle.”
