Brighton-based Cayuga Homes has secured a £11.4m hybrid developer exit and rent stabilisation facility with United Trust Bank’s (UTB) structured property finance team.
The facility refinances Cayuga’s existing development debt and releases equity from the near complete luxury apartment scheme in Hove, East Sussex.
The transaction, which was introduced by Abbey Capital, enabled Cayuga Homes to sell some of the 33 apartments in the development with no early repayment charges, retain the rest and release some equity.
UTB has provided a 24-month, 64% LTV hybrid facility comprising a sales period loan of £3.4m and an £8.1m stabilisation loan secured against the 19 apartments Cayuga intends to retain as investments.
Ed Deedman, co-founder and director of Cayuga Homes, said: “We were looking for a very specific finance facility to suit a unique set of circumstances, and it was refreshing to work with Gerard and the UTB team as they structured a tailored solution which ticked all the boxes.”
Craig Booth, director of Abbey Capital, added: “UTB’s structured property finance team are my go-to lender for clients who require bespoke solutions. Gerard’s team worked quickly and diligently to deliver a loan which enabled Ed and Cayuga Homes to implement their strategy. Another job well done.”
Gerard Morgan Jackson, founder and sales director – structured property finance at United Trust Bank, said: “We were delighted to work with Craig and Ed in structuring a deal delivering exactly what they needed. It was a complex request, with several parties in the capital stack and a desire to complete the loan quickly. At UTB we understand that clients’ needs are often not straightforward and rather than forcing them into a product which doesn’t fully meet their needs, we will try to structure a bespoke solution.”
