BROADWOOD Capital, the specialist alternative lender to real estate investors and developers in the UK, has completed a £1.8mn exit bridge facility to Hadrian Real Estate PLC for their latest residential development to complete at Lenzie, Glasgow. The loan, agreed on a 6-month term, was used to refinance the existing debt, as well as release funds for Hadrian to reinvest into their other developments.
The property is a converted and extended former primary school in the centre of Lenzie, an affluent commuter town to the northeast of Glasgow City Centre.
Alastair Stanley, Director of Broadwood Capital, said: “The immediate area was largely made up of detached houses and bungalows, built in the early 1900s and needed an alternative product such as this for downsizers and young families.”
“The scheme achieved 60% pre-sales and there was strong interest in the 8 remaining units.”
“We were delighted to support the highly experienced Hadrian team with a first class product that has been well received by the local market. The deal really played to Broadwood’s strengths as it required high leverage and had a number of characteristics where a depth of specialist knowledge and an ‘out of the box’ approach was crucial.”
This is the fifth loan completed by Broadwood Capital, complementing previous loans in the office and industrial sectors, taking lending to over £12mn and sees Broadwood expanding its product range to provide exit bridge facilities and loans in the Scotland. Broadwood targets loans of between £0.5mn to £10mn and is looking to support experienced investors and developers on projects which are more complex, require a bespoke solution or need higher leverage.
Gavin Fraser of Hadrian Real Estate PLC commented: “Broadwood were quickly able to get a detailed understanding of the local market and our product. Their property experience and knowledge was fundamental in allowing us to achieve the leverage we required. Broadwood’s tailored funding solution allowed us to refinance the existing lender, but importantly released capital which allows us to progress other schemes to provide much needed additional housing in Scotland and the north of England.”
“Being able to secure a development exit refinance at this high leverage point, from one lender, made the process much more cost and time efficient.”
William Jeens and Niall Crowley of Cap Real Estate arranged the funding for Hadrian Real Estate PLC.