Development Exit Bridging - Singapore Developer, 12-Unit Scheme, Bristol
£980,000 · 68% of completed value · 0.68% pm. An experienced Singapore-based developer refinancing a 12-unit Bristol new build at month 20 to cut interest costs while four remaining units sell.
The Client
British national, 55, property developer. Singapore-resident for 8 years. Experienced developer with 5 prior UK schemes.
The Challenge
The borrower's 12-unit residential new build in Bristol (GDV £4.2m) was on development finance at 1.05% pm over a 22-month term. At month 20, 8 units were sold and 4 remained, with an estimated 3-4 further months of sales, but the development lender was demanding full redemption at month 22. They needed a £980,000 development exit bridge to redeem the development finance and reduce interest costs during the remaining sales period.
Our Solution
Doulton placed a development exit facility secured against the 4 unsold units (completed and habitable). GDV of remaining units was £1,440,000, with the loan advanced at 68% of completed value. The non-resident status was accepted given the borrower's established UK developer track record and the quality of the Bristol residential security. The development finance lender was redeemed in full, and the exit bridge at 0.68% pm saved £3,430 per month versus the development finance rate.
The Outcome
Development exit bridge completed in 11 working days (development finance expiry was 3 weeks away). All 4 remaining units sold within 14 weeks. Bridge redeemed in full. Total saving versus extending development finance was £48,000. Key highlights: development finance redeemed 3 weeks before expiry; 11-working-day completion; £48,000 saving versus extension; non-resident developer accepted on the strength of track record.
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