The Challenge
Two experienced property investors approached Phoenix Money to secure a development exit loan against a portfolio of newly completed residential units, while also raising additional capital on an separate security. Their company required a solution to:
- Redeem an existing charge over a newly built residential development comprising 14 modern homes, valued at nearly £3m.
- Unlock equity through a capital raise secured against the completed development site and an additional residential property.
- Address redemption shortfalls and support a forward strategy involving partial unit sales and longer-term refinancing.
The transaction needed to be structured quickly and efficiently to provide short-term flexibility while allowing our client time to execute the long-term exit.
The Solution
Phoenix Money delivered a time sensitive tailored development exit loan, secured by:
- A first charge over the completed residential development
- An additional charge over a separate residential property
The facility was structured with fully retained payments for the term, providing certainty around servicing while maximising available capital and easing cash flow during the exit period.
The Outcome
The development exit loan and capital raise enabled the clients to:
- Redeem existing development finance and stabilise their portfolio
- Release equity for future business use and new acquisitions
- Execute their exit strategy through a combination of unit sales and long-term refinancing of retained properties
By structuring a comprehensive security package and recognising the clients’ strong financial position, Phoenix Money delivered a flexible development exit solution that balanced risk with growth, allowing the investors to move forward with confidence.
