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Barn Conversion

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Finance: £570,000

Our Client

A local farmer

The Project

We were approached for bridging finance by a Norfolk landowner when his original lender pulled out of discussions. His bank had called in the loan, giving him just four weeks to repay it.
The land had recently received outline planning consent and was owned by the borrower and his immediate family. We advanced a 24-month loan of £570k to repay the bank loan, and to provide some working capital. This bridging facility gave the farmer time to properly market the site to maximise its value.

Finance: £600,000

Our Client

An established, Essex based property developer with their own construction company and site management team.

The Project

Their project involved the conversion of former agricultural buildings into two barn style residential units with luxury contemporary finishes. With planning in place, the project involved stripping out the former barns, putting in a steel framed structure and then fitting out as a pair of residential units with a GDV of over £1m+.
A substantial contribution to purchase costs was required with 100% of each stage of build costs funded. This would involve total investment financing from RQ Capital of £600,000 with stage advances as works progressed. The developer required a flexible approach to the project to facilitate cash flow and guarantee funds were available for them to complete the project.
We had a “door always open” attitude to communications between developer and decision makers at RQ to manage the timings of stage advances with a combination of lender and monitoring surveyor sign off.
After completing the build programme purchasers for the completed units were found, but one had their own property to sell. RQ agreed to receive part repayment of the loan with security taken over the part exchange property to allow the barn sale to complete without delay. This flexible approach to funding enabled the part exchange to unlock the repayment from the sale of new unit. The developer took over marketing of the part exchange resulting in a successful sale and loan repayment.