Refinancing a large portfolio and obtaining funding to enable an ongoing project can be tricky at the best of times, but doing it in the middle of a coronavirus lockdown would be nigh on impossible, right?
In normal circumstances that’s likely to be the case, but Redwood Bank’s quick-thinking, can-do attitude and proactive approach ensured professional landlords were able to get the funding they needed to make the deal happen, despite the problems posed by the pandemic.
Davis Hughes is an established property development company owned by two friends, Joshua Davis and James Hughes. The pair own a string of properties, including HMOs and apartment blocks, in and around the Doncaster area.
The company, which has been trading successfully for six years, wanted to raise £2.1m in order to repay existing lending secured against their properties and, additionally take out a refurbishment loan for an ongoing project.
With discussions taking place at the peak of the COVID-19 outbreak, securing a deal and obtaining valuations was problematic, but Redwood’s team defied the odds to come up with a workable solution within eight weeks.
Chris Finnigan, Head of Business Development, North Region
With no purchase forming any part of the deal, Davis Hughes worked closely with the broker, Commercial Finance Partnership (CFP) Ltd, and Redwood Bank, to be able to refinance the debt on a number of commercial properties. Additionally, they were able to raise funds for a refurbishment project, having secured permission to convert an existing property within their portfolio into nine luxury apartments.
Gary Wilkinson, CEO and Co-Founder of Redwood Bank, said:
"During these challenging and uncertain times, we have still been completely committed to our customers, colleagues and business partners.
“We remain passionate about supporting British businesses, and are even more keen on helping them navigate this ever-changing financial and business landscape – we have a strong appetite to lend and will continue to do so to help keep businesses developing.”
James, from Davis Hughes, said: “Mark at CFP has made purchasing and refinancing our property deals straight forward. He has taken the strain out of the process and Chris Finnigan at Redwood has been very supportive.”
Broker Mark Flanagan of CFP, who introduced James to Redwood Bank, said: “I have dealt with the client and Redwood Bank on a number of projects and we have found them both to be a perfect fit for each other.”