Development exit refinance, Costa Blanca

Completed development and funding pressure

The borrower had completed a 14-unit residential scheme on the Costa Blanca, but the existing senior debt needed to be repaid before every unit could be sold. An immediate forced sale would have risked discounting completed homes simply to meet the finance deadline.

Development exit requirement

The required €6m facility represented 60% loan to value and was structured as an 18-month development exit bridge. Interest was retained within the facility, reducing the need for monthly servicing while the developer marketed and sold the completed units.

• Fourteen completed residential units
• €6m bridge at 60% LTV
• 18-month term with retained interest
• Orderly unit sales formed the repayment strategy

Why bridging matched the objective

This was not a conventional Spanish mortgage or further construction loan. The building work was complete; the commercial problem was timing. Specialist partners structured a bridge that replaced the maturing debt and gave the developer a defined period to sell finished stock at target values rather than accept an accelerated bulk discount.

Outcome

The units sold at their asking values and the bridge was repaid before its contractual maturity. The outcome demonstrates how development exit finance can separate a completed scheme’s sales programme from an earlier lender’s repayment date, provided the completed value and disposal strategy support the requested loan.