Recognise Bank provides £7.1m development exit loan for Bristol scheme

Recognise Bank has provided a £7.1m development exit facility, arranged by Mortimer Street Capital, secured against a residential scheme just south of Bristol.

The loan is set at 80% LTV. It is secured over seven completed homes, four of which are sold subject to contract, plus two further plots currently at damp-proof course stage.

Clearing the debt, freeing up capital

Development exit finance lets a developer repay construction debt once homes are built, giving them time to sell the remaining units without the pressure of a development loan nearing its end date.

Here, the facility repaid the existing development loan and released capital for the developer's next site purchases. That means the borrower can move on to new schemes without waiting for the remaining sales to complete.

Homes with zero energy bills

The homes are finished to a high standard and include the latest smart home technology. Each one also comes with a ten-year Zero Bills guarantee through Octopus Energy's Zero Bills scheme, giving buyers certainty over their energy costs for a decade after they move in.

Pace over price

Orchestrating funding for a mid-sized developer is a moving feast.

Justin Trowse, Managing Director of Mortimer Street Capital, said sales positions and build programmes change constantly, and the next site rarely waits. He said competitive pricing is easy to find. The real challenge is finding a lender that understands the developer's needs, can keep up, and actually gets the deal done. He praised Recognise for moving quickly and decisively.

Heather Mitchell, Business Development Manager at Recognise Bank, said every development has its own circumstances and should be judged on its merits. She said the bank's practical approach allowed it to support a developer whose needs did not fit neatly within standard criteria, giving it the flexibility to press ahead with its next projects.

Trowse led the deal for Mortimer Street Capital, with Mitchell acting for Recognise Bank and Numan Sultan handling the bank's legal work.