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Development Loan | Exclusive UTB 70% LTGDV development

Development Loan

Development loan


United Trust Bank (UTB) has pledged £5 million to revamp an urban brownfield site in Cambridge. The project, led by Factory Estates, is called The Gateway. It features a five-storey building with 13 modern apartments and commercial spaces on the ground floor.

Consequently, UTB’s funding will revitalise the city centre, promoting urban renewal and enhancing The Gateway’s overall appeal. This strategic partnership between UTB and Factory Estates marks a key milestone in transforming urban spaces. The project will provide both residential and commercial amenities for the community.

Refurbishment Buy to LetMoreover, the £5 million investment from UTB highlights its dedication to sustainable urban development. This investment will foster growth and vibrancy in local communities.

Development loan | Factory Estates

Factory Estates is a new addition to UTB’s clientele. The specialised lender is extending a £3.46 million facility, representing 70% of the Loan-to-Gross Development Value (LTGDV). This funding is possible through the Housing Accelerator Fund (HAF), a public-private finance collaboration initiated by Homes England and UTB earlier this year.

The primary aim of HAF is to enhance financial support for small and medium-sized housebuilders. It also supports developers engaged in building activities. Gareth Taylor, a real estate finance specialist from Excellion Capital, presented the proposal to UTB’s Philip Kirkwood.

Factory Estates caught UTB’s attention despite being new to the bank. They have a commendable track record in successful developments in Salford and Manchester. UTB was impressed by the house builder’s achievements and promptly approved the £3.46 million facility. This demonstrates UTB’s commitment to supporting the growth of promising developers in the housing sector and projects.

Development loan | Pre-construction sale

Through heightened gearing, the borrowers obtained attractively priced financing. They also experienced a rapid, uncomplicated disbursement of funds. The initial withdrawal of funds took just 23 working days from credit approval.

Factory Estates has already secured three pre-construction sales at The Gateway. They anticipate more sales as construction progresses. This positive trend underscores the promising outlook for Factory Estates’ ventures at The Gateway.

Development loan | The quotes

Chris Bowman
Chris Bowman, Director at Factory Estates

Chris Bowman, Director of Factory Estates, commented: “Philip and the Team at UTB delivered everything they promised quickly and efficiently. It was an auction purchase, so we worked to tight timescales and faced a few legal challenges. UTB started from scratch, quickly recognised what was needed, and took a pragmatic view. This approach enabled us to secure the funding without delay.

Other lenders might have found these issues problematic. However, thanks to UTB and Gareth at Excellion, banking has been the smoothest part of this project. This is a rare experience for us. The Housing Accelerator Fund has truly delivered as promised!”

Gareth Taylor
Gareth Taylor, Director of Excellion Capital

Gareth Taylor of Excellion Capital commented: “This project attracted Factory Estates because plans were already in place, allowing the team to move quickly. I introduced a lender that could meet their need for speed. From my perspective, UTB delivered on all counts..

They agreed to a higher-geared, 70% LTGDV facility. The whole team at UTB worked swiftly to provide a quick drawdown. When the time came, my client had the money available when needed.”

Philip Kirkwood
Philip Kirkwood, Director of Property Development at United Trust Bank

Philip Kirkwood, director of property development at United Trust Bank, commented: “I’m delighted we supported this Factory Estates development with a higher-geared facility through our innovative Housing Accelerator Fund. Factory Estates is a successful regional developer that creates high-quality homes in needed areas. Working with Chris Bowman has been a pleasure to agree upon and draw this facility in a few short weeks.

We collaborated closely with the Factory Estates team and their excellent professionals to ensure funding was quickly implemented. This scheme is a great example of how specialist development lenders like UTB can partner with public agencies like Homes England. Together, we structure and deliver innovative funding solutions, giving SME housebuilders the support they need to continue building. I look forward to supporting many more Factory Estates developments in the future.”

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