Recognise Bank has provided a £2.66 million bridging finance facility to a regional property developer for a redevelopment site in Burnage, Manchester. The 12-month loan was arranged at 65% loan-to-value through specialist debt and equity advisory firm Roscap.
The facility is secured against a former social and recreational site acquired by the borrower in 2023. The property comprises commercial buildings and three residential apartments. Since acquisition, the developer has obtained planning permission for 66 homes on the site.
Refinancing and capital release
The borrower will use the facility to repay the existing charge on the property, with remaining funds allocated to support additional property investment and development activities. The intended exit strategy involves transitioning to development finance.
According to Paul Bagan, lending manager at Recognise Bank, the transaction required consideration of both the current asset and the borrower’s long-term development plans. “The site has already moved forward significantly since the borrower acquired it, with planning now secured for 66 homes,” Bagan said. “We were able to take a considered view of the existing security, the borrower’s experience and the proposed exit, and structure a facility that gives them the flexibility to move ahead with the next stage of their plans.”
Market context
The transaction comes as the broader property market experiences volatility, with house prices recording their largest monthly drop since 2012 in June. Despite these market conditions, bridging finance continues to provide developers with short-term capital solutions for site acquisitions and refinancing.
Suleman Rafiq, co-CEO at Roscap, described the transaction as “multi-faceted” involving a site with a clear development path and a borrower with an established local track record. Rafiq noted that Recognise Bank’s approach helped deliver certainty needed to complete the refinance and release capital for the next phase of activity.
The deal structure was arranged on a serviced basis, with Roscap working with the bank to finalise the facility terms. The 66-home development represents a significant increase in density for the Burnage site, which previously served social and recreational purposes.
