Development finance lender Atelier has provided a £19.9m peak debt facility for the construction of 57 homes near Westward Ho! on Devon’s north coast. The 36-month financing arrangement will support the delivery of 48 private sale homes and nine affordable units.
The scheme comprises 11 different house types, ranging from two-bedroom terraced homes to three-storey detached houses and detached bungalows. According to the developer, 22 homes have already been reserved.
Funding structure
The facility was structured on a peak-debt basis with a substantial initial advance. Harley Stairmand, Lending Manager at Atelier, described the transaction as complex, requiring careful structuring to align with the development’s delivery and sales timeline.
Peter MacAllan, Origination Director at DCS Capital Advisory, which arranged the financing, said: “This was the third phase of a scheme with a complex structure and an equally complex borrowing requirement.”
Regional context
The development is located near Westward Ho!, a Victorian-era seaside resort that has seen redevelopment activity in recent years. The financing adds to broader activity in the UK housing market, where development finance remains a critical component for housebuilders navigating project delivery.
Nick and Graham, Directors at NG Homes, Tadworthy Ltd, noted the collaborative approach between Atelier and DCS Capital Advisory in structuring the funding solution for the scheme’s requirements.
The transaction represents a mid-sized development finance deal in the regional housing market, with the facility designed to accommodate phased construction and sales over the three-year term.
