Shawbrook has completed a £7.5m development finance facility for a ten-unit residential scheme in Shenfield, Essex, which secured planning enhancements during construction that increased its scope and value.
The Birley Grange development, delivered by Daniel James Developments, comprises seven detached homes and three conversion apartments within a gated estate. The project carried a gross development value of approximately £11.5m and was financed through a 23-month facility structured at 66% loan-to-gross development value.
Planning changes during construction
The scheme’s original approval was expanded during the build phase through two separate planning consents. The developer obtained permission to add an additional apartment beyond the initial scheme and secured consent to replace a planned annex refurbishment with a new-build home. Both changes increased the development’s scale and overall value.
Daniel Mauro, owner of Daniel James Developments, said the planning process required programme management around the consent timetable whilst work continued across the wider site. “Securing the additional planning consents allowed us to make better use of the site and ultimately deliver a stronger development,” he said.
The project represents Shawbrook’s second development finance transaction with Daniel James Developments. The site is located within walking distance of Shenfield Station.
Lender flexibility
Mauro attributed the project’s ability to adapt to the existing lender relationship. “Having already worked with Shawbrook, there was an understanding of what we wanted to achieve and the flexibility to support the project as those plans changed,” he said.
Charles Spence, relationship director for development finance at Shawbrook, said the planning enhancements had allowed the developer to extract additional value from the site. “Development plans can evolve, particularly when there is an opportunity to improve the end product,” he said.
The development finance sector has seen increased activity as developers navigate planning processes and site optimisation strategies, similar to trends observed in property acquisitions across the South East. The scheme has now completed and sold, according to Spence.
The transaction adds to Shawbrook’s development finance portfolio as lenders continue to support residential schemes in commuter locations. The ability to secure mid-build planning changes reflects broader flexibility in development finance arrangements, though such variations typically require close coordination between developers and funders throughout the construction phase.
