£3.35m Development Facility Supports Bradford Mill Conversion

Momenta Finance is pleased to have completed a development facility to support the conversion of a vacant mill into 60 apartments in Bradford, West Yorkshire. The facility supports an experienced developer with a strong local track record in mill conversions.

The Property

The security comprises a five-storey vacant mill building with planning permission for conversion into 55 one-bedroom apartments and five two-bedroom apartments, extending to approximately 29,500 sq ft. The property is located around half a mile from Bradford city centre and close to the University of Bradford. The proposed apartments are well proportioned and benefit from good natural light.

The Borrower

The borrower is a special purpose vehicle established for the development. The principals are experienced developers with a strong track record in Bradford and the surrounding area.

The business plan and exit strategy were well considered and supported by achievable assumptions. The borrower had already acquired the site and secured planning consent before Momenta’s involvement.

Momenta were able to underwrite the transaction with support from BNP Paribas Real Estate as valuer and Wilson Nesbitt Solicitors, acting for Momenta.

The Solution

Momenta Finance provided a day-one facility of £0.35m and a development facility of approximately £3m over an 18-month term. The scheme has a gross development value of £5.5m, with Momenta’s maximum loan-to-GDV below 70%.

The borrowers’ experience delivering comparable schemes in the local area provided additional comfort around execution and delivery.

This transaction demonstrates Momenta Finance’s ability to deliver structured real estate finance solutions that help experienced developers bring much-needed residential accommodation forward in strong regional locations.