Shawbrook provides £4.5m development finance for former Bath quarry site
Shawbrook has provided a £4.5m development finance facility to Arc X Developments to support the acquisition and development of six detached homes on the site of a former stone quarry in Combe Down, located around 2.5km from Bath city centre.
The 21-month facility supports both the acquisition and development of the secluded woodland site, with the completed scheme expected to have a Gross Development Value (GDV) of approximately £6.75m.
Led by three experienced developers with a track record across Bath and Somerset, Arc X Developments required a lender that could accommodate the more complex arrangements around the land acquisition and provide flexibility during construction.
Introduced by broker partner South West Business Finance, Shawbrook structured a £4.5m facility providing up to 85% Loan-to-Cost (LTC), with day-one funding capability to support cash flow and deposit payments during the development.
The 21-month term comprises 15 months for construction followed by a six-month sales period.
Alex Feilden-Cook, director at Arc X Developments, said: “This site came with some unusual arrangements around the acquisition, so we needed a lender that could be flexible rather than take a one-size-fits-all approach.
“Shawbrook and South West Business Finance took the time to understand what we were trying to achieve and put funding in place that works for the project as it progresses.”
Greg Pescott, relationship director, Development Finance at Shawbrook, commented: “This is a fascinating site with a lot of character, and the plans make good use of its secluded woodland setting while delivering six new homes in a sought-after part of Bath.
“The acquisition structure was a little different to a typical development, so the funding needed to reflect that. Arc X has an experienced team behind the project and a clear plan for the site, and we’re looking forward to seeing the development take shape.”