CapitalRise completes third funding deal since lockdown began
CapitalRise has closed its third development funding deal since the start of the UK's coronavirus lockdown, a bridging loan to fund the acquisition of land for a prime residential development located on Icklingham Road, part of the exclusive Fairmile estate in Cobham, Surrey.
As a dedicated alternative finance provider for Prime Property developments in London and the Home Counties, CapitalRise has seen a 90 per cent increase in funding requests from developers since the UK lockdown began.
CapitalRise specialises in bespoke finance packages, working closely with developers to create flexible solutions that can be implemented quickly within changing circumstances. As many lenders have withdrawn from the market and are halting their loans, the credit team at CapitalRise continues to work to provide funds to developers and ensure the service that is expected.
This latest deal in Cobham was completed through Broker, John Crabtree of Direct 2 Lender and all parties worked together to overcome complications caused by Covid-19. A solution was structured which included a necessary bridging loan and plans to fund the development once land was purchased, providing a total facility of GBP6.6 million. This structure has allowed the client to complete the transaction even during these difficult and challenging times.
Lyndon Miles, CapitalRise Lending Director, says: "It was a pleasure to work on this development. Icklingham Road is a prime location and locations such as these are our primary focus. The Developer has long experience of crafting bespoke, superior homes and has worked with the Borrower already. This deal confirms the strong appetite across prime property for financing developments, in prime locations outside London. There is still hunger for funding across the developer community and we are proud to still be lending!"
John Crabtree, Direct 2 Lender Director, says: “The site was on a private estate, incorporating challenges also relating to planning. Most lenders do not have the appetite to lend on large single units and their development; this being the case particularly during the past several years. The change in the planning meant we, and the lender, required a high level of experience and thorough understanding to structure the finance in the best way, as well as knowledge of development, planning, and the market, for large high value single units. At several points during the process there were complications but the pragmatic approach of CapitalRise was excellent. Even with the current climate and challenges, where many lenders have withdrawn from the market, or changed their appetite for lending, CapitalRise remained consistent and committed. Complex cases will always bring forth challenges and finding solutions and a way through is important.”