Shawbrook Bank has provided a £4.5 million development finance facility to Arc X Developments for a residential scheme on a former stone quarry site in Combe Down, approximately 2.5 kilometres from Bath city centre.
The 21-month facility covers both land acquisition and construction of six detached homes on the woodland site, which carries an expected gross development value of approximately £6.75 million.
Financing structure
The facility was structured at up to 85% loan-to-cost, with day-one funding capability designed to support cash flow and deposit payments throughout the development. The term comprises 15 months for construction and six months for sales.
Arc X Developments, led by three developers with experience across Bath and Somerset, required financing that could accommodate what the company described as unusual arrangements around the land acquisition. South West Business Finance introduced the transaction to Shawbrook.
Alex Feilden-Cook, director at Arc X Developments, said the site came with non-standard acquisition arrangements that required a lender willing to structure the facility accordingly. “Shawbrook and South West Business Finance took the time to understand what we were trying to achieve and put funding in place that works for the project as it progresses,” he stated.
Development finance market
The transaction reflects continued activity in the development finance sector, with lenders adapting terms to accommodate projects with non-standard structures. Similar flexibility has been observed across funding platforms serving the development market.
Greg Pescott, relationship director for development finance at Shawbrook, noted the acquisition structure differed from typical development transactions, requiring tailored funding arrangements. “Arc X has an experienced team behind the project and a clear plan for the site,” he said.
The Combe Down site represents a brownfield redevelopment in an area where housing demand remains strong. The transaction adds to development activity in the Bath and Somerset region, where residential development continues despite broader market pressures.
