Case Study: HTB provides complex £12.5m bridge refinancing land with PBSA planning

Hampshire Trust Bank has provided a £12.5 million bridging loan deal for a complex transaction involving two land sites in Nottingham.

Related topics:  Finance,  Bridging,  Case Study
Property | Reporter
1st December 2023
Lorenzo HTB 845
"This deal demonstrates how we work tirelessly to achieve results, and actively pursue complex cases where we add value, and give certainty to our clients"
- Lorenzo Satchell - Hampshire Trust Bank

The client was looking to pay off existing private funders and a previous shareholder in the business.

Security for the loan consisted of two land sites, both with consented planning and located in central Nottingham. The shortage of student beds in Nottingham (c7,000 beds at present) supported the planning that has been granted for both schemes.

The first had planning granted for a mixed scheme of 420 student beds and 149 residential units, while the second had original planning granted for 122 residential apartments, but saw revised planning granted two weeks prior to completion for a 245-unit Purpose Built Student Accommodation (PBSA) scheme.

The case was complex, entailing two different UK-based SPV borrowing entities, both held under the same group structure and with the same underlying applicant, an experienced UK property/land investor and developer.

The bridging facility was required to repay the existing loan facility, which had been used to acquire the sites and obtain planning but had come to the end of term. The intended exit was to obtain forward funding for the scheme rather than build out the schemes themselves, so additional time was needed to bridge the gap.

Jake Manns-Benson at SPF Short Term Finance contacted HTB as he was confident that the Bank’s experience of complex cases meant it would be able to structure a deal which would work for all parties.

HTB provided two, first charge bridging loans, one to each SPV. The first was for £8.82m and the second facility for £2.71m, both at 65% gross loan to value (LTV)

Jake Manns-Benson, associate, SPF Short Term Finance, said: “We are thrilled to have worked with HTB on this deal. I want to thank Lorenzo and his team, as well as Helen Johnston at JMW Solicitors, for all their hard work in getting this complex transaction over the line.

“We knew HTB was the right lender to ensure the best possible terms for our client, with this scheme providing further student accommodation in Nottingham where there is a recognised shortage of supply.”

Lorenzo Satchell, (pictured) sales director of bridging finance, Hampshire Trust Bank, commented: “This deal demonstrates how we work tirelessly to achieve results, and actively pursue complex cases where we add value, and give certainty to our clients.

“When there is an experienced broker such as SPF involved, we know that they will work equally hard to ensure all the relevant documentation is supplied when we need it.

“Large ticket bridging deals will almost always be complex cases, which is why brokers partner with lenders like us who possess the experience to provide bespoke solutions in order to get deals completed and paid out.”

Derek Simpson, director of real estate - debt advisory, SPF Private Clients, added:

“This case is a prime example of how the strong collaboration between the SPF Short Term Finance, SPF Debt Advisory team and HTB has ensured we deliver for the client.”

More like this
Latest from Financial Reporter
Latest from Protection Reporter
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.