Mortimer Street Capital has arranged a £3.995m bridging facility for a developer, secured against property assets in Surrey valued at £6.7m, in partnership with Recognise Bank.
The loan was structured at 60% loan-to-value and is secured against two mixed-use development sites containing existing structures. The portfolio includes residential property, equestrian facilities and development land.
Transaction structure
Legal work for the bank was handled by Numan Sultan, partner at Gunnercooke, while Eva Gascoigne of Fisher German provided valuation services.
Mortimer Street Capital focuses on commercial, development and bridging finance, with particular emphasis on structured transactions. The firm reports deploying over £1bn of real estate debt in the UK market over a 15-year period.
Justin Trowse, managing director at Mortimer Street Capital, said: “This was a highly bespoke transaction, bringing together multiple asset types with different planning consents, so structuring the right solution was key. Recognise Bank and its professional team took a pragmatic and commercial approach throughout, allowing us to deliver a facility that gives the borrower the flexibility to execute their business plan while providing the lender with strong underlying security.”
Heather Mitchell, lending manager at Recognise Bank, said: “SME developers are fundamental to the UK housing market, and we take our role in supporting such businesses very seriously. Although this transaction was complex, our team was helped throughout the underwriting process by the quality of the information provided by the team at Mortimer Street Capital and this undoubtedly enabled us to achieve a very positive customer outcome.”
Market context
The transaction reflects continued activity in the bridging finance market for development projects involving multiple asset classes and planning consents. Mixed-use portfolios with equestrian elements remain a niche segment of the development finance sector.
