United Trust Bank has completed a £6.35 million structured refinance for a 40-apartment build-to-rent development in Weston-Super-Mare, representing 75% loan-to-value against the £8.5 million scheme.
The facility was arranged for Refresh Living, a BTR development and management company, through broker BlueHorizon. The development comprises three blocks, with one block fully completed and let at the time of refinancing, while two blocks required final works before tenant occupation.
Dual-facility structure
UTB’s structured property finance division created a dual-facility solution consisting of a five-year residential investment loan secured against the completed, income-producing block, and a three-month developer exit bridge with rolled interest secured against the remaining two blocks. The bridge facility was designed to convert into an additional residential investment loan once works completed and apartments were let.
The structure enabled Refresh Living to refinance its existing development facility, extract equity before practical completion, and reduce overall finance costs. According to the parties involved, the incumbent lender could not match UTB’s pricing or flexibility.
Market context
The transaction reflects growing lender appetite for BTR schemes as the sector matures in the UK. The phased approach to financing allows developers to transition from development to long-term investment funding while managing cash flow during the letting period.
Mark Thomas, managing director of Refresh Living, said the solution allowed the company to achieve its objectives and provided a route into longer-term investment finance. Julian King, managing director of BlueHorizon, noted the flexibility helped Refresh outperform its original investment targets whilst reducing capital costs.
Neil O’Shea, business development director for structured property finance at United Trust Bank, said the team was suited to transactions involving part-complete assets, phased lettings and tailored exit strategies. The bank is backed by a retail deposits business.
The deal represents one of several structured property finance transactions UTB has completed in the BTR sector, as specialist lenders compete for market share in the residential investment space.