RAW Capital Partners has completed a loan worth £5.3m for a luxury courtyard development, valued at £9.5m.

The Guernsey-based investment management firm’s client owned the land and entered into a joint venture with a development company in 2021 to construct 11 premium homes. The development comprises luxury semi-detached and terraced homes, featuring properties with three to four bedrooms, each with gardens and garages.

Initially, the borrower planned to sell 10 of the properties, while retaining one for personal use.

However, with the original financing set to mature in May 2024 and no renewal option available, the client approached RAW for a refinancing development exit solution.

The firm called on its panel of valuers to find the appropriate one to instruct them to work swiftly.

The valuation highlighted a shortage of high-quality properties of this kind, indicating that the properties would sell at pace.

As a result, the development exit loan was instructed with a 12-month term to align with the anticipated quick sales of the properties. The loan was provided at 48.54% LTV and the sale of the assets is the exit strategy for the loan.

Interim managing director at RAW Capital Partners, Ben Nichols, said: "This case presented some challenges, most notably the tight timeline due to the upcoming maturity of the client’s original financing. However, our team’s expertise and our bespoke approach to lending allowed us to overcome these hurdles speedily and effectively.

"Ultimately, this case underlines the importance of taking into account the full picture of an application. Here, we took into consideration the potential sale value of the 10 properties, as well as the client’s extensive assets and liabilities, and were able to deliver a large loan that met the client’s needs. We’re delighted with the outcome, as is the client."

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