An experienced manager who had been working for a PLC within the construction industry had personally set up a SPV limited company specifically for individual property development projects.
He had identified a plot of land with an old snooker hall in an exclusive Liverpool suburb within the proximity of good schools and hence demand. The client negotiated an option agreement on the land, on the back of an offer from BFS, subject to planning permission being granted for 3 x 4 bed detached houses.
Further to planning permission being granted BFS provided a development finance facility of c. £510k covering 65% of Gross Development Value, covering 100% of build costs, fees and interest, with balance funding towards the purchase of the land. The build was to be project managed by the client with individual contracts for trades and services. Funding commenced in winter 2016, being drawn down in stages further to BFS’s Quantity Surveyor’s inspection.
The first property was pre-sold in Autumn 2017 with all properties completed and sold by early 2018.