Overview
Hampshire Trust Bank (HTB) provided a £13.7m development facility to support the Phase 2 delivery of Knowle Grange, a residential scheme in Shepley, near Huddersfield, West Yorkshire.
The funding was provided to Vivly Living, a Huddersfield-based housebuilder, to support the construction of 52 new build homes for local families and first-time buyers. All homes will be delivered on a freehold basis and are forecast to achieve EPC A ratings, reflecting growing demand for energy-efficient housing. The scheme benefits from full planning consent and forms the second phase of a wider development, following the successful delivery of 31 homes on the site.
The Challenge
The borrower required a funding solution following a change in funding arrangements, with the scheme needing a structure and level of leverage that fell outside standard lending parameters. While the fundamentals of the development were strong, the project needed a lender willing to take a considered view on leverage, risk and delivery in order to provide certainty and keep the scheme moving forward.
The Solution
HTB structured a £13.7m development facility aligned to the delivery profile of the Phase 2 residential scheme. The facility was designed to support the construction of 52 new build homes while taking a considered view on leverage and risk, providing the certainty and commercial confidence Vivly Living needed to move the project forward following a change in funding arrangements.
Key features of the deal:
- £13.7m development facility for Phase 2 of the Knowle Grange scheme
- Funding to support the construction of 52 new build homes
- Homes targeting local families and first-time buyers
- All properties to be delivered on a freehold basis
- Forecast EPC A ratings across the scheme
- Full planning consent in place for delivery
- Structured to reflect a leverage profile outside standard lending parameters
Execution
The transaction was introduced by Ice Cubed Property Finance and marks a new relationship between HTB and Vivly Living, while further strengthening HTB’s relationship with the broker. The deal was led by Harry Bhogal, Lending Director at HTB, with support from Josh Swaby, Business Development Manager for the North and Midlands, and Joseph Gibson, Relationship Manager.
The Outcome
HTB’s funding enabled Vivly Living to move ahead with Phase 2 of the Knowle Grange development, supporting the delivery of energy-efficient housing in West Yorkshire and allowing the borrower to proceed with confidence following a change in funding arrangements.
- £13.7m facility completed to support Phase 2 delivery of Knowle Grange
- 52 new build homes brought forward for private sale
- Scheme remained on track despite a change in funding arrangements
- Funding structure aligned to the project’s delivery profile and leverage requirements
- New relationship established between HTB and Vivly Living
- Support provided for the delivery of EPC A-rated homes in a regional market
What This Demonstrates
Flexibility on Structure and Leverage
This transaction demonstrates HTB’s ability to take a considered view where leverage requirements fall outside standard lending parameters, delivering structures that reflect the realities of the scheme rather than applying a one-size-fits-all approach.
Support for Regional SME Developers
The deal highlights HTB’s focus on supporting experienced regional housebuilders with strong local market knowledge, particularly where mainstream lenders may be unable to accommodate specific funding requirements.
Client & Partner Feedback
George Butterfield, Director at Vivly Living, said:
“We are delighted to be working with HTB on this project. They took the time to understand the scheme and our objectives, plus they gave us confidence that they could deliver. Their clear communication and pragmatic approach allowed us to move forward in a speedy manner, knowing that the funding was properly aligned with the project. We are now on site and working towards our new Show Home launch in March, and bringing much needed A-rated energy efficient homes to the village of Shepley.”