Porthcawl property developers, JC Securities, identified a new site to develop 26 residential properties in Neath, but with an access road first required to service all plots, the company turned to Cornerstone for specialist lending advice.
The site, of two- and three-bedroom houses and bungalows, was the latest development from husband-and-wife team, Jim and Christine Slater, but it required an initial loan of £1.7m to bring the development to life.
Having previous experience of small-scale development in both Wales and overseas in Australia, the couple saw the potential of the former primary school site in Clyne.
With Phase 1 bringing the infrastructure to the site, to allow access to all plots, and the build of 13 properties.
Phase 2 funding for the build of the remaining 13 properties, will follow once the road has been completed so that the site continues through without stopping.
Jim at JC Securities said:
“We already had six pre-sales from this development but needed the vital road infrastructure to be in place for all 26 properties, prior to any construction. We committed our own funding and then sought the expert help of Cornerstone Commercial’s Ken Davies.”
Ken worked hard to gain an understanding of the lending required against the completed 1st phase and the residual land value of phase 2.
“To gain the necessary funding, it was imperative that JC Securities could demonstrate the experience and stability of the contractor, which would be taking on the build. Too often critical items, such as timber frames, which need to be ordered and paid for in advance of any building work, can be overlooked, so it was vital that we worked closely with both the client and the contractor to make sure the full costings were understood.”
Cornerstone Commercial secured a lender, Invest and Fund, which had a genuine desire to lend and were keen to work with Cornerstone on a development that was right for them.
“Neil at Invest & Fund was instrumental in the process and was flexible, showing his commitment by sticking to the initial funding terms offered even though prices increased, and the build cost altered halfway through the development.
“From the outset, all parties were determined to work to make this development happen. We worked against the many challenges presented to ensure that we could structure a solution and obtain funding to bring this development to life.”