New Student Housing in Nottingham
A property development company has secured £2.2m to fund the development of a new student housing block thanks to a deal completed by County Durham-based Commercial Expert Ltd.
The deal saw the FCA regulated commercial broker source and finalise two competitively priced bridging loans for OJ Property Sourcing and Development Ltd to progress with an ordinarily difficult to fund project.
The property financed, which is based in Nottingham, is a 47-bed Student HMO with an adjacent Car Park which has the potential to be developed into an additional Student HMO.
Dan Brown, senior business manager at Commercial Expert said: “HMOs are ordinarily difficult to fund due to their complexity, but the dedication of our team and understanding of individual lender requirements led to a successful deal completion.
“We scoured the market for the best deal around but also had to consider their exit strategy and how this fit with their plans. I’m pleased that we were able to secure fantastic rates for the client and the right amount of funding needed.”
One bridging loan of £217,000 was provided by Together Finance at a rate of 1% per month for 12 months allowing time for the firm to complete the Planning Application for the additional student block.
The additional £1.82 million was provided by Tuscan Capital also as a bridging loan to allow OJ Property Sourcing and Development to progress with their plans to sell the individual properties.
A development loan has been pre-agreed in line with Commercial Expert’s mission to ensure clients always have an exit strategy.
Carl Graham, regional director at Tuscan Capital said: ‘Having known the team at Commercial Expert for over 15 years now, it was a pleasure to work with Dan Brown on such a complex transaction.
“When deals of this complexity are presented in such a diligent way, it makes arriving at a lending decision all that much quicker. I thank Dan for the patient, yet professional way in which he dealt with this case. With nervy challenges and delays outside of our control, it was great to see a successful conclusion.”
Commercial Expert is an independent commercial finance broker offering a comprehensive range of business finance to a broad spectrum of clients, each with differing financial requirements.
The firm is proud to be authorised and regulated by the Financial Conduct Authority (FCA) and a full member of the National Association of Commercial Finance Brokers (NACFB) since 2008.
This ensures a robust process is adhered to throughout the application process and regulated commercial financial advice is offered.