The team arranged a £3m land bridge to refinance a former gas works site in Tonbridge, Kent, releasing equity to fund the remedial works ahead of a 144-apartment scheme.
Case Study
FRP secures £3m bridge to remediate Tonbridge gas works for 144 homes
The 18-month land bridge with Secure Trust Bank Business Finance funds remediation of a former gas works site in Kent, preparing the ground for a scheme of 144 apartments.
Background
A developer with more than 30 years’ experience came to the team directly as a new client. The plan for the former gas works site was clear: remediate the land, then build a scheme of 144 apartments comprising 52 one-bedroom, 69 two-bedroom and 23 three-bedroom units. Before any homes could follow, the ground had to be made safe, and the developer needed the remedial works funded first. Remediation on a gas site takes specialist knowledge to understand, and lenders need to be comfortable with what the works involve.
Action
Led by Partner Edward Horn-Smith with Associate Director Corey Dennis, the team drew on its sector knowledge to understand the remedial works, built the facility around the developer’s plan for the site and placed it with Secure Trust Bank Business Finance, chosen for its understanding of the works and its competitive pricing.
Key features of the facility include:
- A £3m land bridge over an 18-month term
- Structured at 44% LTV
- Refinancing the site and releasing equity to fund the remedial works
- Built around a planned refinance onto development finance once remediation is complete
- Managed by the team from the developer’s first approach through to completion
Outcome
The facility funds the stage that gets the site moving. Once the remedial works are complete, the developer plans to refinance onto development finance and bring forward 144 new homes on the former gas works, with FRP Real Estate Advisory supporting a new client relationship from the first stage of the project.
A gas works is not a site many lenders want to take on in a tough market, and the remediation is the one part of the project nobody sees once the homes are built. The developer had a clear plan for the land, so our job was to put that plan in front of a lender willing to take the time to understand the ground beneath it. Getting this stage right is what lets 144 homes follow.
Key services
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