Significant funding has been arranged for the redevelopment of a historic brownfield site in Tonbridge, Kent. A former gasworks site has secured a bridging loan of £3 million. The facility was provided by Secure Trust Bank Business Finance and is ring-fenced for the decontamination and remediation of the ground.
Property advisory firm FRP was responsible for arranging and structuring the credit facility. The funding provides the financial foundation to remediate the contaminated site professionally before the subsequent construction phases for the planned residential scheme can commence.
Remediation paves the way for 144 flats
The brownfield regeneration scheme is slated for the development of 144 new-build apartments. The historical use as a gasworks left significant contamination in the soil, making comprehensive ground remediation essential prior to the start of above-ground construction. Only once these works are complete will the site meet the necessary criteria for future residential use.
The facility structured by FRP has a term of 18 months. With a loan-to-value of 44 per cent, the loan carries a conservative risk profile, providing the lender with additional headroom while ensuring the prompt execution of the site remediation.
Key transaction details
- —Volume: £3 million bridging facility
- —Lender: Secure Trust Bank Business Finance
- —Advisory and structuring: FRP Real Estate
- —Key terms: 18-month term at 44 per cent loan-to-value
Bridging loans play a central role in UK brownfield site regeneration. They bridge the challenging phase of site preparation and remediation until the project, with a de-risked site, can be transitioned into longer-term development or construction financing.
