The opportunity
A near-complete scheme that needed the right finance to finish
HBI Capital provided funding to an experienced property developer to refinance and complete the final stages of a residential conversion, transforming a commercial building into a small scheme of self-contained apartments.
The remaining works were minimal and largely cosmetic: the heavy lifting was done, and the building simply needed to be finished and brought to market. The borrower has a strong track record delivering similar conversion schemes, which gave us confidence in both the programme and the exit.
The value was already in the building. What the developer needed was a lender who could see that, and move at the pace of the works.
The structure
First charge, personal guarantee, and a clear route to term debt
The facility was secured by a first charge over the property and a personal guarantee from the borrower, with an independent valuation confirming the property’s value ahead of completion.
The planned exit was a refinance onto a longer-term buy-to-let mortgage once the apartments were complete and lettable. A term of up to 12 months gave the developer comfortable headroom to finish the works, let the units and secure term funding without pressure.
Why it worked
Three things that made this a straightforward yes
- 01
An asset close to completion
Cosmetic works only, so the risk of cost or programme overrun was low and the finished value was easy to evidence.
- 02
A borrower with a proven record
The developer had delivered comparable conversions before, and backed the facility with a personal guarantee.
- 03
A realistic, well-defined exit
Refinancing onto buy-to-let once lettable is a conventional, well-trodden route for a scheme of this kind.
