Reditum Lending provides £10.8m facility for resi project in South Ayrshire
Specialist lender Reditum Lending has provided Allanvale Land Investments with a bridging loan of £10.8m for a major residential and commercial development in South Ayrshire, Scotland.
Located at Corton, the 125-acre land plot is valued at £18m and forms the majority of a two-part masterplan with outline planning permission in place for 750 new homes.
Allanvale is planning to bring a number of high-profile national housebuilders on board, with contracts valued at over £45m.
As well as the residential element, the development, on the east side of the A77 near Ayr Hospital, will include retail, employment and local community uses and will help bring South Ayrshire Council’s local development plan to fruition.
The Reditum loan will be used to repay existing finance and to purchase the second masterplan site.
The facility is set to be repaid through development finance for infrastructure works, once the necessary legal undertakings with the national housebuilders have concluded.
This is the first major transaction undertaken by Reditum Lending, following its launch last month.
The new specialist lender is a division of Reditum Capital, a boutique financier that was established in 2013 to fund complex property and land transactions across the UK and Europe.
The firm has a track record in funding commercial, residential and land transactions, having closed over 100 transactions, worth in excess of £520m.
Jim Kirkwood, director at Allanvale Land Investments, said: “The Corton plot represents an exciting opportunity to create a new, thriving community in South Ayrshire and agreement of this facility takes us one step closer to realising this long-awaited goal.
“The site has so much potential, and in addition to beautiful new homes, the site will play to a host of new community facilities including a school, supermarket and associated retail, that will ensure this is a sustainable, long term development where people can work, live and play.
“Our thanks go to Reditum Lending for their support in helping us to move the project forward, and following conclusion of the necessary legal documentation, infrastructure works can soon begin on the site.”
Mark Stephen, managing director of Reditum Lending, said: “Development of the Corton site has been on the cards for some time and Allanvale have managed to negotiate solid terms with some of the region’s most reputable housebuilders.
“In what may otherwise have been a challenging position for the developer, we have provided a solution that will enable these exciting plans to progress.
“At Reditum Lending, it is our goal to take bridging back to basics as we look to provide a clear, transparent and bespoke service that is done quickly and efficiently.
“We are property people at heart, not just banking, and strive to provide something other tick box lenders cannot.”