Octane has completed a £4.36m developer exit facility to support the completion and sale of a 14-unit apartment development in Paignton, Devon.
The loan refinances an existing development facility and funds the final stages of construction at Keysfield Road, a part-complete scheme of two- and three-bedroom apartments over four floors. The building is already wind and watertight, with most units completed.
Structured as a 12-month finish and exit facility, the loan includes a day-one advance of about £4m and a £360,000 refurbishment tranche to cover the remaining cost to complete. The outstanding works are non-structural fit-out and external works, expected to take eight to 12 weeks.
The facility is set at 75% loan-to-value against the property's day-one value, calculated on a GDV less cost-to-complete basis rather than a residual valuation. This allowed the borrower to refinance its existing lender while keeping enough capital to finish the scheme and progress sales.
The development, marketed by Connells, has already secured five reservations worth £2.06m in total, with four units getting offers at or above asking price. The facility amortises as units sell, and surplus proceeds can be returned to the borrower.
The transaction was done for an established local development company whose director has delivered residential and commercial schemes across Torbay and Plymouth. The deal was introduced by Dan Place, BDM at Balance for Business Ltd, led by Francesca Woodhouse, senior BDM, and underwritten by Rick Hollingsworth, head of short-term credit, and Nicky Pack, senior credit manager at Octane.
Francesca commented: “What made this deal work was our flexibility and willingness to understand the transaction in detail.
“We took the time to understand the development, works completed and sales secured, and structured the facility around the project’s specific needs.
“Working closely with the Balance for Business team, who shared our commitment to finding the right solution, made the process efficient and collaborative, ultimately delivering a successful outcome for all parties.”
Dan added: “This transaction is a great reflection of our team’s expertise, commitment, and tenacity.
“Octane were excellent to deal with from start to finish.
“Throughout the process, they remained focused on the client and played a key role in getting the deal successfully over the line.”
Octane Provides £4.36m Finish and Exit Loan for Devon Apartments