An experienced property investor wanted to convert a disused hospital in Darlington into 30 modern flats. Already owning the property, the client needed a £2.9 million loan to finance the refurbishment. The development was projected to deliver a Gross Development Value (GDV) of £5.5 million upon completion.
The main challenge, in this case, was the significant financial requirement for the extensive conversion project. The client needed a loan that aligned with their project timeline and GDV to ensure seamless execution. Additionally, managing cash flow efficiently during the construction phase was critical for the project’s success.
To address the challenge, we provided the property investor with a £2.9 million loan at a monthly interest rate of 0.7%. By releasing the funds in stages, we are facilitating smoother project progress and minimising financial strain during construction.
Construction has officially begun on the disused hospital. Once the 30 high-quality flats are completed, the gross-development value is projected to sit at £5.5 million. The client will be selling a number of the units to exit the loan while retaining some to grant them a steady rental income and ongoing capital growth.