UTB provided an £8.5m senior debt facility, while Iron Bridge contributed £2m of mezzanine finance to support the developer’s acquisition and development of the site.
The property – a vacant five-storey office building – has planning consent for 64 residential units, which will be rented to a housing association.
The developer – who has previously borrowed from UTB – has 15 years of experience in the sector and developed over 1,000 units which have been rented to housing associations.
Property finance specialist PIA Financial Group – which was mandated to source both the senior and mezzanine funding – advised the developer on the deal.
- Iron Bridge appoints Martin Gilsenan to main board of directors
- UTB lends £9.7m for historic Welsh building conversion
- FW Capital provides funding for eco-friendly homes
Paul Flannery, property development manager at UTB (pictured above), added: “We were very happy to support this project by a highly regarded and experienced developer to provide much-needed new homes for the rented sector in Hemel Hempstead.
“Working closely with Iron Bridge and PIA Financial Group, we were able to structure funding which suited the developer’s requirements and we look forward to the delivery of another successful project in partnership with the team at Iron Bridge.”
Martin Gilsenan, managing director – sales at Iron Bridge Finance, added: “We enjoy an excellent relationship with UTB and it was satisfying to see our combined facility enable the client to get to 85% loan-to-cost, therefore retaining sufficient equity to pursue other opportunities.
“The dialogue between ourselves, UTB and PIA Financial Group was first class and we were very impressed with the quality and track record of the client.”