In 2007 we had assisted this well established family firm of developers and builders by providing 85% of the costs of acquiring a site with planning permission for four houses and five bungalows.
They planned to hold the site whilst they completed their existing development which we were financing. Early in 2008, with the other project built but not yet sold, we agreed to fund 100% of the building works within a facility of £1.2m, in part relying on the value they had generated in the earlier project. This earlier facility has since been fully repaid from sales.
The customer has made good progress through 2008 and into 2009. They are receiving considerable interest in the completed units and are shortly to complete two sales at close to their original target selling prices.
The customer has had a relationship with UTB over eight years during which time we have funded numerous projects. As we have built up confidence in their ability to deliver and sell good quality homes we have been able to provide flexible funding which has enabled them to move smoothly from one site to another and thereby reduce non-productive time between projects.
Loan: £1.2 million
Loan to completed value: 67%