Signature understand the importance of client retention better than most, as demonstrated by its commitment to connecting Relationship Managers with UK-based developers to build strong working relationships.
To ensure repeat business, developers must first enjoy a positive experience underpinned by values of professionalism and efficiency, to deliver an experience that motivates them to return with new opportunities, rather than seek a different short-term property finance provider.
Once again, Signature experienced the benefits of being a relationship-led lender, as a client returned with another project, having been previously supported on a significant property deal, when they purchased and developed a plot thanks to a development finance loan.
The successful developer wanted to purchase the Ross-on-Wye site’s five remaining plots, with a view to develop and sell two of the properties as part of their robust exit strategy, before securing funding for the other plots.
New opportunity emerges through change
During the earlier 2023 engagement, the client only had the option to purchase one of the six plots as the vendor planned to retain the others for future development. However, this situation has since changed, and the client was given the opportunity to purchase all the plots and replicate the success of the first project.
The opportunity required a development loan of approximately £1.2M to assist with the purchase and development – a process that had worked well previously, with the first completed property achieving a sale of £725k and the full loan amount later repaid through the agreed exit strategy.
For this project, the client estimated the purchase of the five remaining plots would cost around £1M and the subsequent development of 2 plots would cost around £500k – finances that would be released in staged drawdowns to help the client maintain its build programme.
With a combined GDV of £2M for the 2 completed houses plus the remaining 3 plots, the project’s long-term potential was clear to understand and a site visit to the excellent project location only confirmed the scale of the developer’s ambition was readily achievable.
Only 16 miles from Hereford, 18 miles from Gloucester and 25 miles from Cheltenham, its location is ideal for those seeking a rural lifestyle but within a commutable distance of busy nearby cities, with all opportunities they offer.
In addition, the town benefits from a variety of amenities, including supermarkets, restaurants and independent shops and has excellent transport links, with the M50 motorway located a short distance away.
The client’s experience and proven track record of completing similar projects offered Signature added confidence that this would be another successful collaboration, with the benefits of building strong long-term relationships on full display, as both parties were familiar with each other and the processes involved.
Good team with an achievable ambition
Once all the necessary background and credit checks were completed, Signature agreed to provide the full amount on an 18-month loan term. This would allow the client more than enough time to develop, market and sell properties for the first two plots, before moving on to the next phase of the development.
Josh Barrett, Relationship Manager at Signature, commented: “There is no bigger compliment than having a past client return with a new development opportunity, as it shows they truly value the services we provide and want to enjoy a similar experience again.
“From our perspective, it’s about making customers happy and supporting them in whatever way possible. If we do this in the first instance, then there’s a good chance it will develop into a long-term relationship, as they feel confident in our ability to provide first-class support.
“That was certainly the case here, as the client had already experienced our approach to lending and saw it led to a successful project delivery. With this information in mind, there was no need to look elsewhere – they were confident that the same outcome could be achieved this time round, as the projects were similar in nature albeit on a larger scale.
“As such, we are very much looking forward to helping the client achieve their vision for the project, supporting the development one phase at a time until the five plots have been successfully developed.”
Broker Ian Pottle of Cornerstone Commercial Finance, added: “Throughout the first project, Signature showed they were willing to go above and beyond to support the aims of our developer client. They were professional and efficient in their approach and tailored the solution to deliver the short-term property loan needed.
“Service quality, certainty of funding and following through on promises made at the outset are what sets Signature apart and important considerations for developers and brokers alike. Building a relationship with lenders that understand what a developer is doing and shares their vision is important to the success of any development.
“As expected, this engagement has been no different to the first. Josh and the wider Signature team have been supportive throughout the process and we’re glad to be working with them again as the project progresses in the months ahead.”