UTB agrees £12.1m facility for acquisition and development of former bus depot

United Trust Bank (UTB) has agreed to provide a £12.1m loan to an SPV for the acquisition and development of a former bus depot site.

The location has planning for 21 three-bed homes and an adjoining apartment block with 29 flats and ground-floor retail space.

The specialist bank provided an initial £2.1m to secure the site in the form of a three-month bridging facility, and also agreed a £10m development facility up to 65% GDV to fund the completion of the project.

“Although a new client to UTB, the parent company of the SPV had a strong track record of delivering successful developments, including playing a significant role in a substantial regeneration scheme in London,” said Adam Bovingdon, property development director at UTB (pictured above).

“The initial £2.1m facility required to secure the site needed to be arranged and drawn quickly due to a strict completion deadline [and] the borrower risked forfeiting their deposit if the completion date wasn’t met.

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