Redwood Bank’s tenacity prevents property developer from losing commercial building

THE SITUATION

Paul Booker, of Bionanovate Ltd, originally took out loans from Dorset Local Enterprise Partnership (LEP) to purchase and develop the site in Sandbanks as a family-owned asset, with a view to refinancing with a different lender.  

However, COVID-19 then hit, and many lenders retracted from the market leaving Paul high and dry. 

THE SOLUTION

Broker Steve Walker, from Promise Solutions, picked up the case in September 2021 as the property passed into receivership. Working closely with Redwood Bank, a loan was agreed to repay Dorset LEP and to allow Paul and his family to regain control of the property, which was valued at £3m. A loan of £1.95m was agreed at an LTV of 65 per cent.

The property, which is made up of commercial units and offices, was put on the market this year and several offers were made. If the sale had not gone ahead, there would have been a danger of Paul losing the property.

THE EXPERIENCE

Paul said his dealings with Redwood demonstrates that the Bank has a genuine passion for customers’ success.

He said: “Redwood was the only bank which had the courage to help a family business adversely affected by COVID-19 after successfully trading for twenty years; it had the courage based upon its deep knowledge and experience of the market and its desire to ‘walk the talk’ of its company values. Its staff worked through, around or over obstacles.

“Redwood really lived the value of treating people as they would like to be treated. I felt like finally, I was in the right place and that Andre Parcian and Leon Marklew actively listened to us and understood our passion too.”

Andre Parcian, Redwood’s Head of Business Development, Midlands and Wales, said: “We treated this application as an investment loan. Passing rent was strong, there was a good tenant mix, and it met our key product criteria. 

“I really believed in the customer and wanted to support them. The information we received from the broker helped to support and structure the deal.”

Steve added: “This was a very complex case. Every other lender we approached came up with reasons why they couldn't help. We were fortunate that Andre and colleagues at Redwood had the strong underwriting experience necessary to see through the problems and had the tenacity to walk the talk. 

“Redwood took the time to understand our circumstances and applied common sense underwriting and a hunger which is often lacking from some lenders and their Business Development Managers.”