From quarry to homes: Shawbrook provides £4.5m development finance for Bath scheme
A former Bath stone quarry is set to become six new detached homes with the support of a £4.5 million development finance facility from Shawbrook.
At a glance
Shawbrook has provided a £4.5 million development finance facility to Arc X Developments Ltd to support the acquisition and development of six detached homes in Combe Down, Bath.
The development is located on the site of a former stone quarry, set amongst mature woodland around 2.5km from Bath city centre. The secluded site will provide six new detached houses, with the completed scheme expected to have a GDV of approximately £6.75 million.
Led by three experienced developers with a strong track record across Bath and Somerset, Arc X Developments required a lender that could accommodate the more complex structure of the land acquisition and provide flexibility during the construction period.
Broker partner, South West Business Finance introduced Arc X Developments to Shawbrook, with the Development Finance team structuring a 21-month, £4.5 million facility to support both the acquisition and development of the site.
The facility provides up to 85% Loan-to-Cost and includes day-one funding capability to support cash flow and deposit payments during the development. The 21-month term comprises 15 months for construction followed by a six-month sales period.
This site came with some unusual arrangements around the acquisition, so we needed a lender that could be flexible rather than take a one-size-fits-all approach. 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.
Greg Pescott, Relationship Director, Development Finance at Shawbrook, commented:
“This is a fascinating site with a lot of character, and the plans make good use of its secluded woodland setting while delivering six new homes in a sought-after part of Bath.
The acquisition structure was a little different to a typical development, so the funding needed to reflect that. Arc X has an experienced team behind the project and a clear plan for the site, and we're looking forward to seeing the development take shape.”
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