Advising a leading property finance lender in respect of a loan facility of £21 million to assist a well known developer acquire six connected properties for potential redevelopment for a sum of £30 million.
The transaction involved two well known property developers who will be seeking to obtain a planning consent that will regenerate the properties and area to create a mixed use development that will consist of over 750 new homes, a retail park and office units. The gross development value of the development will exceed £240 million and will increase employment in the area.
Due to the speculative nature of the proposed development at the time of the acquisition the transaction required an in-depth assessment of all aspects of the title, the access arrangements, historical planning uses and local planning policy.
The security required by the lender was extensive and included a legal charge over each property, a full debenture, a charge over shares and numerous cross guarantees.
Whilst the acquisition has now completed the department expects to be instructed by the lender to deal with the planning aspects and the build funding.