The £2 million property development facility will be used to develop a 16-unit assisted living scheme in Wallington.
Australia-based specialist lender for real estate Pallas Capital has completed a £2 million property development facility to fund the refinance and ground-up development of a 16-unit assisted living scheme in Wallington, Surrey.
The 16-month development facility was structured at a 65% loan to gross development value (LTGDV). The loan will fund the refinance of the existing debt and the construction of a new assisted living development. The borrower has said that it plans to refinance onto a term loan upon completion.
Although the borrower has not been disclosed, Pallas Capital says that it is an experienced residential developer with a strong track record of delivering high-quality residential schemes. While this represents their first assisted living development, the project aims to deliver the same standard of design and finish that has characterised their previous projects.
“This transaction demonstrates our willingness to support experienced developers moving into new asset classes where the fundamentals of the project are strong, and the sponsor has a proven delivery track record,” Mark Witherington, originator at Pallas Capital.
“Assisted living is a growing sector with strong demand, and our experience in this space allowed us to structure a facility that worked for both the borrower and the project. Despite some delays outside everyone’s control, the transaction progressed well overall, and we were pleased to support an increase in the facility following a reassessment of costs,” he added.
Pallas Group manages a loan book of £1.8 billion and has completed more than 1,100 loans and other investment types worth close to £2.75 billion since 2016.
