Assetz Capital has provided a £2.3 million development facility for a six-unit bungalow scheme in Leintwardine, Herefordshire, after the original lender withdrew on the scheduled completion date.
The 16-month facility, structured at 70% loan to gross development value, supports developer Marches Homes in demolishing an existing dormer bungalow on a 0.78-acre site on High Street and constructing six new eco-dormer detached bungalows.
Project details
Each property will offer three bedrooms, with some including a study or storeroom that could serve as a fourth bedroom. All six units are being built to A-rated energy performance standards.
The funding arrangement comes as off-plan sales fall to their lowest level since 2013, highlighting ongoing challenges in the development finance sector.
Mark Roberts, relationship director at Assetz Capital, said: “We stepped in at a critical juncture on this development, providing certainty of funding when the original funder withdrew on the day of completion. Our ability to move decisively, underwrite quickly and deliver within a revised timescale ensured the transaction proceeded without disruption, safeguarding the sponsor’s position and keeping the scheme on track.”
Developer response
Miles Pattison-Appleton, land director at Marches Homes, said the original lender withdrew after a period of delays. “Assetz Capital stepped in and quickly stabilised the situation,” he said. “Straight away, we found the team to be professional, efficient and proactive, pushing professional reports and legals through to completion, and staying patient when title registration was delayed.”
The financing reflects broader pressures facing SME housebuilders, as regulatory pressures continue to affect various segments of the UK property market.
The Assetz Capital deal team comprised Mark Roberts, relationship director; Jenna Gray, case manager; and Catherine Joynt, senior credit manager.
