Working Together to Create a Commuter Haven
Location: Chatham, Kent
Developer: AMG Chatham Ltd
Date: May 2017
Example of: Development funding
To provide funding of LTV 65% of day 1 at £4.7m against a GDV of £6.64m
The client had planning permission for 16 four-bed townhouses. The properties were to be marketed to buyers from London and the suburbs looking to trade flats for houses with outdoor space - without taking on too gruelling a commute. The developer needed funding in two phases to complement the development schedule: two phases of eight houses each.
With a drawdown schedule and site visits agreed thanks to a close working relationship with valuer Robert Sterling, funds were released and the phase one build began. After a successful open day, the first five properties released for sale all sold within a matter of days - some had even received offers prior to the launch date.
Achievement in building is about developing a successful relationship between the borrower, the lender, and the valuer... this project had all that in abundance.
Arwel Griffith, Robert Sterling Surveyors
The houses have been completed to a high standard. The developer applied for a further advance to fund the increase in spec for each unit and application costs for an extra two units. The further advance has been approved subject to further site visits.
Meanwhile back on the site, at the time of writing five phase-one houses are complete, and the remaining three are at first fix internally. The phase-two houses are progressing on schedule, with completion anticipated in 3-4 months. The overall result is a high quality product which has resulted in strong sales on units that have been released so far, and a very positive relationship between Amicus and AMG Chatham.
Supporting this transaction was a no-brainer. Experienced men of property who know what they are doing coupled with an innovative and value for money product is a perfect combination.
Nigel Alexander, Amicus Property Finance Relationship Director