"Given the strength of the asset, the clear exit strategy, and demonstrated market demand, we were able to structure a 75% LTV facility that met the borrower’s requirements"
- Iain Burke - Acre Lane Capital
Acre Lane Capital has announced that it has successfully provided a £7m development exit bridge loan in Buckinghamshire, structured at 75% Loan-to-Value, to assist a developer in completing the final phase of unit sales.
The borrower faced a critical challenge in transitioning from development finance to exit, with multiple units still available for sale. Existing financial arrangements, including a first charge and mezzanine debt, needed to be refinanced into a more structured and cost-effective facility.
The ability to secure a high-LTV solution was essential to maintaining financial stability and allowing the borrower to maximise sale values rather than being forced into discounted disposals. Acre Lane Capital worked closely with the borrower to structure a funding package that provided a higher initial drawdown, ensuring outstanding credit obligations were addressed while keeping sufficient liquidity available for sales progression.
By consolidating various funding arrangements into a single structured loan, Acre Lane Capital enabled the borrower to simplify their financial position, reducing the complexity of managing multiple lenders and repayment schedules. This streamlined approach improved cash flow management, ensuring that resources could be directed towards marketing the units effectively and securing the best possible exit terms.
The tailored solution also provided flexibility in the borrower’s sales strategy. With the units already attracting interest, the loan was structured to align with the borrower’s timeline, allowing them to sell at full market value rather than rushing sales due to financial pressures. Several units had already been sold, while additional reservations were in place, demonstrating strong market demand. By securing exit finance that accounted for this liquidity, the borrower was able to progress sales in an orderly manner, maximising returns.
The quality of the development played a key role in securing the 75% LTV loan structure. As a newly completed residential scheme, finished to a high standard and in a desirable location, the project was well-positioned in the market. The borrower had already established a track record of delivering similar schemes, further reinforcing the viability of the project and ensuring lender confidence in the asset’s valuation.
“This transaction is a prime example of how development exit finance can be used strategically to manage financial commitments while supporting an effective sales process," explained Iain Burke, Business Development Manager at Acre Lane Capital, "Given the strength of the asset, the clear exit strategy, and demonstrated market demand, we were able to structure a 75% LTV facility that met the borrower’s requirements.
"Development exit loans continue to be a vital tool for developers looking to transition smoothly from construction to sale without undue financial pressure," he concluded.
