Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Wimbledon Residential Development Receives £2.98m Exit Finance
Shawbrook Bank has completed a £2.98 million development exit loan for a nine-unit residential scheme in Wimbledon. The transaction was finalised in two and a half weeks from the initial application, according to PropertyWire.
The development consists of nine units, including three flats and two mews houses. Four of these units had already been sold prior to the refinancing arrangement. Shawbrook agreed to a 75% loan-to-gross-development-value (LTGDV) ratio, reflecting the scheme’s sales progress.
The refinancing structure enabled the developer to access lower-cost finance and release equity for future projects. It also provided flexibility regarding the timing of the remaining unit sales.
GDV Finance, a broker specialising in development finance, introduced the transaction. The arrangement was completed with close cooperation between Shawbrook and GDV Finance.
This transaction comes at a time when UK inflation is moderating, which may create more favourable conditions for property developers seeking refinancing options. Exit loans such as this typically provide developers with bridge financing between project completion and the final sale of units, allowing for more efficient capital recycling. The 75% LTGDV ratio is within typical market parameters for schemes with established sales momentum.
For letting agents and inventory clerks, the completion of this refinancing deal highlights ongoing activity in the London property development market and the continued demand for residential units in Wimbledon.
Source: PropertyWire