Experienced family-run developer consolidates debt with a £10.8m development exit loan
Shawbrook has successfully supported a new client - an experienced, family-run developer with an exit loan facility for a luxury block of 17 apartments and one retail unit in the heart of central London.
At a glance
Shawbrook has successfully supported a new client - an experienced, family-run developer with an exit loan facility for a luxury block of 17 apartments and one retail unit in the heart of central London.
Initially, the client planned to refinance through two separate lenders at completion - with Shawbrook providing a £6 million exit facility for the 11 flats being sold, and the second lender funding the 6 units being retained for letting.
However, delays to the completion of works meant the other lender was unable to proceed. We assessed the remaining works and stepped in pre-completion - something many lenders would not consider. This allowed us to help the developer navigate the complexities of delivering this substantial project, while managing just one banking relationship.
Thanks to the borrower’s strong track record and the flexibility of our in-house expertise, we refinanced the full scheme with a single, £10.8 million consolidated facility, giving the client the flexibility and efficiency they needed. As a result, the developer was able to repay existing borrowing and secure a more cost-effective rate for the next 12 months, providing the breathing room to complete the project and bring high-quality homes to market - for sale and rental.
The development exit loan that Shawbrook delivered for our client - especially at a time when we were facing delays with the other lender - was fantastic. Alex and Tina kept us fully informed throughout, providing tailored finance that met our client’s specific needs. We’re looking forward to hopefully working with Shawbrook again on the next project.
Our ability to step in before the project was completed - something many lenders typically avoid - proved to be a game-changer. Initially, we planned to co-fund the deal at completion alongside another lender, but unforeseen delays prevented them from moving forward. Leveraging the borrower’s strong track record and our in-house development finance expertise, we were able to consolidate the funding into a single, flexible, and bespoke facility. This gave the client the breathing space needed to complete the project and deliver high-quality homes to the market.
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