Commercial Land Acquisition for Industrial Unit Development in Staffordshire
£1,450,000 · 14 months · 1.00% pm. A commercial developer acquired a serviced employment zone plot in Staffordshire to build two mid-sized industrial units for sale or long lease.
The Client
Commercial developer
The Challenge
A commercial developer acquired a serviced employment zone plot in Staffordshire to build two mid-sized industrial units for sale or long lease. Commercial mortgage lenders required pre-lets or pre-sales before advancing - neither was in place at the point of land purchase.
Our Solution
Doulton provided a £1.45m commercial land loan to enable unconditional purchase. During the bridge term the developer secured a heads of terms agreement with an end-user occupier for both units.
The Outcome
Site purchased. Pre-let agreed during bridge term, significantly improving the development exit. Development facility drawn down to build the units and redeem the land loan at month thirteen. Key highlights: Commercial employment land accepted; Pre-let secured during bridge term; Development facility drawn - project now under construction.
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