Property finance team advise in connection with a £2.7m loan for share purchase of Essex-based developer

Matthew Grogan and Catherine Linsell acted on behalf of Paragon Development Finance Limited in connection with a £2.7m loan facility for the purposes of the acquisition by the borrower of an Essex-based development business (the Target). The Target owned a site in Essex (the Site) on which the borrower company (the Borrower) planned to erect nine new build terraced houses.

It was important to both Paragon and the Borrower that the Thomson Snell & Passmore team acted quickly to complete the lender’s due diligence since contracts for the purchase of the share capital of Developer had already been exchanged. There was, therefore, a deadline for completion which could not be extended.

There were some hurdles along the way, especially since during the due diligence process it became clear that the Site had access issues that may have prevented the planned development. The team worked alongside the lawyers acting for the Developer and the Borrower to secure a deed of easement which was curative of the issues discovered.

Paragon Development Finance Limited expressed their thanks to the Thomson Snell & Passmore team for their continued help with the matter, especially in view of the timescales.