Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
£2.95m Bridging Loan Supports Liverpool Apartment Scheme
District & County Investments has provided a £2.95 million net bridging facility to fund a brownfield regeneration project in Liverpool city centre. The development is expected to deliver more than 150 apartments upon completion.
The bridging loan was structured as a planning bridge, allowing the developer to access funding while Building Safety Regulation (BSR) requirements were being discharged. This arrangement enabled the developer to secure finance ahead of transitioning to development finance. The transaction was completed within 14 days of credit approval.
According to District & County Investments, planning delays following consent are becoming a more common challenge for developers. The lender noted that developers are increasingly required to commit additional capital after planning permission has been granted, but before development finance facilities become available for drawdown. This case reflects a broader trend in the bridging finance market, where short-term capital is needed to bridge the gap between planning approval and development finance drawdown.
BSR compliance requirements are adding time and complexity to residential schemes above certain thresholds, creating additional funding challenges for developers navigating new safety regulations. The Liverpool project is being delivered by a local developer with previous industry recognition, supported by sponsors with a track record in the region.
The scheme forms part of ongoing regeneration efforts in Liverpool city centre, where residential development activity has continued despite wider market challenges. The facility demonstrates how specialist lenders are adapting their products to address the evolving regulatory landscape for residential development, particularly for schemes requiring BSR compliance before progressing to main construction finance.
Source: PropertyWire