Thomson Snell & Passmore advise on complex commercial property deal

The transaction involved four sites to create a large mixed used development consisting of open market housing, affordable housing, retail and office space.

The transaction was complex insofar as the three open market sites (each mortgaged by different banks) were all inextricably linked to the affordable housing site (unencumbered) as the planning documents prohibited the sale of any of the open market units until the affordable housing had been completed and transferred to a registered provider.

As each lender required control over the unencumbered affordable housing site (to ensure compliance with the planning and to allow the sale of the open market units) the transaction required the firms involved to negotiate and agree a bespoke cross secured structure which resulted in a joint venture development agreement, security arrangements and variations to the planning documents.