Signature Property Finance has supported an experienced residential developer in Scotland with a capital raise bridging facility that enables the completion of two pre-sold bungalows on a small development in the popular town of Brechin.
Introduced by Steven Downie of ASC Finance for Business, the deal demonstrates Signature’s ability to back experienced operators with a considered plan, a proven track record and good local market knowledge.
Supporting growth through development
The borrower is a highly experienced property developer and property investor with over 20 years’ experience in the market in Scotland, who has successfully delivered multiple residential projects across the region.
In this area alone, the firm has delivered a variety of projects, including the transformation of derelict properties and new build developments, with a combined GDV exceeding £3.65 million.
This latest facility enables the completion of two plots of a five-unit bungalow development in Brechin. The project follows the successful sale of the first two plots at £325,000 each, with these two latest plots also pre-sold at £325,000 apiece.
Signature provided a £300,000 bridging loan to enable completion of the partially constructed plots, secured against these latest development plots and the remaining, as yet undeveloped plot, at a 75% LTV based on the combined site value of £400,000.
Prime location and desirable homes
The development is located in the heart of Brechin, a historic town in Angus, known for its strong community, proximity to the coast, and easy access to Dundee and Aberdeen. The properties are designed as modern, energy-efficient three-bedroom bungalows with high-specification features, including:
- German-designed kitchens
- Vaulted living room ceilings with full-height windows
- Air source heat pumps for heating and hot water
- Flexible layouts with buyer-customisable finishes
These homes have been designed to be particularly attractive to the downsizer market, given the strong local demand and limited supply of new-build bungalows in the area.
The developer has already delivered several successful projects on this site, including a refurbished shop-to-house conversion, a derelict cottage transformation, and the recent completion of a new-build bungalow, which redeemed a previous Signature facility.
Alan Coats, Lending Manager Scotland at Signature Property Finance, commented: “It is always gratifying when a developer returns and seeks our support with a new project, particularly when it is one of such high quality.
“It is clear we have followed through on our previous promises and the developer is happy with the way we conduct our business, which is the best endorsement a short-term property finance provider can receive.
“This is a proven developer with deep roots in the local community and a clear vision for delivering high-quality homes in a sought-after location. His track record speaks for itself, and the pre-sales on these plots highlights the demand and the quality of this scheme.”
Steven Downie of ASC Finance for Business said: “While there are a lot of lenders in the market, few if any, can match Signature’s determination to do what they say they are going to do and deliver funds on the terms agreed at the outset – with no nasty last-minute surprises.
“Signature’s Relationship Managers and lending team work closely to ensure the whole process flows smoothly and quickly. Communication is good too, which removes a lot of frustration for us and the borrower.
“Once this project is completed, there is clearly scope to develop an ongoing relationship with Signature to help deliver future residential developments across Scotland and beyond.”
Clear exit and future opportunities
The primary exit for the facility is via the sale of the two soon-to-be-completed plots, anticipated to be mid-2025. The project has been independently valued at a GDV of £975,000, with sales of comparable local properties supporting this figure.
Signature’s funding will allow the developer to complete the homes to the same high standards as the already sold plots, ensuring a strong resale market and maximising returns.
Coats concludes: “Here at Signature we work hard to deliver products that experienced developers, who know their markets and understand the full development lifecycle, can leverage to create valuable housing. This deal is a great example of how we can support developers with the funds they need, when they need them, to complete projects and achieve successful exits.”