RESTRUCTURING £1.675M OF DEVELOPMENT ASSETS WITH A CONTROLLED EXIT STRATEGY

A structured developer exit facility designed to stabilise cash flow, repay existing borrowing and release capital to complete adjoining works.

A returning developer client required funding against two high-value residential assets in a prime location.

One property had completed and was being marketed at £1.675m. Existing borrowing of £750,000 needed to be repaid.

A second property was mid-conversion and required additional capital to reach completion before being brought to market.

The objectives were clear:

• Refinance current debt
• Raise controlled additional funds
• Align the facility to a realistic sales strategy
• Avoid disrupting existing arrangements

Following lender engagement, an 18-month facility was structured and secured against the completed property.

To strengthen the position and optimise terms, a crossed second charge was incorporated over an additional residential asset.

A stepped drawdown facility was agreed, ensuring capital was released in line with the renovation programme rather than advanced in full at the outset, thus minimising interest incurred.

The structure delivered:

• Repayment of the existing £750,000 borrowing
• Controlled additional capital to complete the second project
• Alignment with a defined exit strategy
• Stability ahead of market sale
• Flexible drawdown, with interest applied only to funds as utilised

Speed was important, but so was structure.

The facility was designed to provide certainty of execution while maintaining control across two interlinked assets.

Expert Finance approaches bridging in this way, as a structured tool that supports delivery and exit planning, not a short-term reaction.