Regentsmead assists two developers in one day

Regentsmead assists two developers in one day




B&C recently accompanied development lender Regentsmead on two site visits… .

B&C recently accompanied Development lender Regentsmead on two site visits.

Regentsmead first took B&C to a six unit development site in Kings Norton at Redhill Road, situated by the Birmingham City Football Club’s training ground. The development started in March this year after the land (which was originally part of someone’s garden) was purchased. Since the development of the buildings, we have been told that everything has been sold apart from one of the homes.

One of the houses which had been bought had already been moved into by the owners – despite still being a building site!

Out of the properties, there were two five-bed, four-bathroom houses, comprised of three floors, priced at £500,000 and two other properties which had four bedrooms, priced at £350,000. The most expensive property stood at £575,000.

 
The loan facility funded by Regentsmead totalled at £1.6 million, and the GDV stood at £3.2 million. The LTV was at 50 per cent and the loan term was for 12 months – however at nine months in the site is almost done and the majority of the units has been sold.



 
Regentsmead, who has strong relationships with the Sikh community, also met up with a potential client who owns a small chain of hotels and is looking to build six- seven units in Reading which overlook a golf course. The client was recommended by one of its existing Sikh clients, who was more than happy to give a praising testimonial at the meeting.

James added that this regularly happens because of the “close relationship we have with our clients and because of our high service levels”.

Regentsmead also took B&C to visit another site in Burwell in Cambridgeshire, where the Sikh developer was recommended to Regentsmead by a broker it regularly works with.

The site was originally a plot of land which had a derelict building situated on it, which was purchased by the developer, who lived next door to it. The developer said that he is planning to build three houses on the plot and is looking for a 12-month loan in order to pay off the first charge to RBS as well as for the development costs.

Regentsmead went through with the new client what he would expect when taking a loan from the lender, where James’s transparency and need to make sure the client understands the process and what the deal involves, made the client feel comfortable with the deal.

Commenting on the site visits, James said: “I was delighted to get such positive feedback from several regular clients we are assisting, the personal nature of our business means these visits are essential in relationship building plus there is no substitute for actually seeing the projects.

“Our regular clients appreciate the value of service, knowledge and speed over simply cost, one of them even got us to refinance much cheaper specialist bank purely because of the service levels we offer against the cumbersome procedures of the bank.

“Knowledge of property and developing is essential in our business and our longevity in this field is a major source of comfort for our regular clients. We were able to immediately discuss and approve further projects on site and make some changes to an existing facility which we can do on the spot without recourse to a credit committee.

“Our clients get the benefit of working with a self-funded lender which means we can do things that no other lender can.”

James added that it was a very worthwhile trip seeing some very valued existing and new clients and “a great opportunity to stick the wellies on and clamber around in the mud!”

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