A former gas works site in Tonbridge, Kent, is set to be remediated for a scheme of 144 apartments. The work will be funded by a £3m land bridge that the Real Estate Advisory team at FRP arranged with Secure Trust Bank Business Finance (STB).
The deal was set out in a release issued on behalf of FRP on 10 November. The funding is intended to prepare the site for housing. The borrower plans to move onto development finance once the remedial works are complete.
01Terms of the facility
The facility runs for 18 months at 44% LTV. It refinances the site and releases equity, which will be used to fund the remedial works required on the former gas works before the apartments can be developed.
According to the release, the borrower plans to refinance onto development finance once those works are complete. The land bridge therefore covers the stage between the current position of the site and the start of the development itself.
FRP said STB was chosen as the lender for its understanding of the remedial works and its competitive pricing. The transaction was led by Edward Horn-Smith, Partner at FRP.
02The proposed homes
The scheme is made up of 144 apartments. Of these, 52 are one-bedroom homes, 69 are two-bedroom homes and 23 are three-bedroom homes.
Two-bedroom apartments make up the largest share of the scheme. One-bedroom homes form the next largest group, with a smaller number of three-bedroom apartments completing the mix.
The release does not set out a timetable for the remediation or for construction. The summary provided also does not include further details of the design of the apartments.
03From remediation to development
The Tonbridge site shows how funding can be structured around remedial works on a former industrial site. In this case, the bridge covers the period before development finance is put in place, and the equity it releases pays for the clean-up of the land.
Once the remediation stage is finished and development finance has been arranged, the project would be in a position to move towards the building phase. For readers following how residential schemes progress from site preparation to construction, our article on choosing engineered timber joists looks at one of the structural options used on new building projects.
Details and image via FRP.
