A block of previously tired flats in central Cheltenham has been rejuvenated into a stunning, Georgian style contemporary development by ASD Contracts thanks to a £2.3m investment property loan from Secure Trust Bank (STB) Real Estate Finance.
Situated on Wellington Road in Cheltenham town centre, Buckingham Court is currently undergoing a major refurbishment that will see it offer 16 new two-bedroom flats.
The unfurnished homes, which have been designed by ASD Contracts are expected to increase the rental yield of the development when they are made available to prospective tenants from January 2024.
ASD Contracts, a customer of Secure trust Bank Real Estate Finance since 2021, initially drew a £1.95m loan, which will be subsequently increased by £350,000 to reach the final agreement. The deal was signed with a Loan To Value (LTV) of 62.6%, reducing to 60% once refurbishment is completed, with the asset held as an investment under the exit plan.
Designed as high-efficiency, accessible homes for professionals and couples, the development boasts quick access to transport links, nearby amenities in the town centre and ample parking. A portion of the loan was also used to boost the EPC rating of the properties from a D to a B.
The deal was sealed thanks to STB's deep understanding of the market, and approachability from start to finish. Following the purchase of the land, a £2.3m residential investment loan with a rate of 6.42%, and a term of five years was facilitated by David Burke, Relationship Director at STB.
Andy Shaw, Director at ASD Contracts, said: "Given the rise in interest rates over the last 18 months, we were conscious of the speed of delivery of the transaction. It was fantastic to work with STB, who not only delivered the deal in six weeks, but also remained constantly on hand to deliver the deal from beginning to end. David Burke (Relationship Director at STB) has a deep understanding of the industry and process, which really aided the efficiency of the transaction."
He continued: "We are intent on creating homes for our customers, placing practicality and communication at the centre of what we do. We have developed a portfolio of high-quality, energy-efficient homes in a prime location in Cheltenham, built-upon a great working relationship with STB. I would not hesitate to work with David and the wider team again in the future."
David Burke, Relationship Director at Secure Trust Bank Real Estate Finance, said: "Having witnessed Andy's passion for developing top-tier real estate, it was a clear that our partnership would work extremely well. As specialists in residential property investment and development, we knew we could deliver what other banks might not have been able to, and we couldn't be prouder to have played a role in the development of a stunning, practical development."
The deal was brokered by Edinburgh-based Conduit Finance.
For more details, visit Secure Trust Bank Real Estate Finance.