City Finance Brokers, the specialist mortgage and finance brokerage, has become the first broker to complete a bridging loan facility with Ultimate Finance under its new government-backed Coronavirus Business Interruption Loan Scheme (“CBILS”) bridging facility with a £1.9m loan.
The facility is being funded by Ultimate Finance and guaranteed by the British Business Bank (UK Government) and has been secured against a new residential development in Grimsby known as “The Cooperage”. The scheme has seen the sensitive transformation of a historic former brewery into a collection of 20 luxury apartments which have now completed.
The scheme was impacted by the COVID-19 lockdown as it neared completion, suffering a four-month delay as a result of suppliers and sub-contractors being unable to be on-site when the construction industry was closed by the Government. Following the re-opening of the industry, the site has now reached practical completion and has been launched with extremely positive responses including a possible local civic construction award.
The Ultimate Finance facility provides the client with a development exit strategy, giving them time to sell the units at market value, removing the pressure to repay before the sales can be completed.
Mark Horne, Managing Director at City Finance Brokers, said: “The CBILS is a hugely positive and welcome initiative for the industry that will undoubtedly support many businesses as they seek to overcome the challenges posed by the ongoing global pandemic. We are delighted to have been able to secure this development exit loan for our client, enabling them to continue their sales efforts without the adverse impacts of time pressures.”
Sam Cousins, Regional Director, Ultimate Finance, said: “Our CBILS backed Bridging loans enable us to support clients whose developments or properties have been impacted by COVID-19, and the closure of the construction industry. We are delighted to have been able to support City Finance Brokers and their client with the funding required to get ‘The Cooperage’ finished and on the market, removing the financial pressure at this time.”
Adrian Smith, owner of The Cooperage, said: “The last few months have been challenging for many businesses like ours and this loan has come as a lifeline for us. We are delighted to have secured this development exit loan to allow us to sell the remaining units over the course of the next 12 months following the transformation of one of Grimsby’s most historic buildings, a former brewery in the centre of this up and coming town, into a collection of luxury apartments fit for modern living.”