We were appointed to the panel of this lender, who provides development and investment loan facilities in June 2017. Since then we have received 178 instructions to date. We advise on all aspects of the loan documentation, negotiation and due diligence process including advising the lender on the provision of security from key contractors.
An example of a transaction this year related to the provision of development finance for Phase 1 of a development comprising 157 total in total in Kendal, South Lakes.
The scheme was entered into as part of a collaboration between the Borrower’s shareholders and social impact investor, Housing Growth Partnership (HGP). HGP is backed by Homes England and aims to support residential development and increase the number of new homes built in the UK.
Our work involved the usual legal due diligence and a review of various agreements relating to the involvement of HGP and the management and delivery of the project. We in turn prepared security arrangements for the Bank (including construction security), based on the structure of the transaction and project funding.
The site itself was complex, with the Borrower acquiring the whole of the site in phases, and negotiating a drainage easement, and securing planning consent and a Section 106 Agreement, prior to its initial purchase. Our legal due diligence included a careful review of the planning consents to ensure that the development could be delivered in accordance with the planning consents notwithstanding the Borrower’s phased acquisition of the site under its purchase contract.
The Borrower completed its initial purchase of the site in November and we understand that Aldermore’ advances in respect of the development are now underway.