Rickesh Patel, Director of Real Estate Finance at Mantra Commercial, played a pivotal role in brokering this deal. He praised the LDS team for their adept handling of the complexities involved, highlighting the unique value of LDS’s offering in a market hungry for leverage opportunities that also manage lenders’ risk effectively.

LDS and Sancus have completed a £14.15 million financing deal, facilitating the construction of 52 new homes on a sprawling brownfield site in East London. This marks the first collaboration between the two firms, setting a new precedent in the development finance sector.

The combined financing arrangement saw LDS contribute an initial £1.25 million, complementing Sancus’s £12.9 million development loan. This strategic funding mix not only minimised the equity required from the developer but also maximised potential returns, while simultaneously mitigating project risks through LDS’s innovative sales guarantee. This guarantee offers an alternative exit strategy, bolstering confidence among both the developer and the lender.

The collaboration has received accolades from developer Shazad Mahmood of GM Gardens Ltd, who lauded LDS for their professionalism and efficiency throughout the financing process. Richard Whitehouse, UK Managing Director at Sancus, also expressed enthusiasm about enabling this significant housing project, noting the synergy between experienced property lenders and advisors in bringing such complex developments to fruition.

Ben Jenkinson, Managing Director at LDS, underscored the significance of this partnership, noting it as their largest sales guarantee to date. This project not only regenerates a former industrial area but also addresses the acute need for new homes in East London. Jenkinson pointed to the LDS and Sancus partnership as a transformative force in development finance, with plans to support further large-scale projects, indicating a bright future for SME developers across the UK.