IT’S OK – I’M WITH SDKA: Bridging lender agrees £2,275,000 loan for former AA building acquisition

16 December 2025

SDKA has rescued a developer’s plans to buy and convert the former AA building in Newcastle upon Tyne into 116 flats with a £2,275,000 Residential bridge.

With the deal on the verge of breaking down when another lender stalled the application process, broker Chris Ferguson of Ferguson Capital made the SOS call.

With an initial loan to purchase price of 87.5% LTV, SDKA revved-up the lending process and booked the valuation which gave a final LTV of 53.66%. During this time the lender’s in-house legal team had to overcome several complex issues.

The loan, which took just seven weeks from initial call to completion, was concluded at a fixed rate of 1.05% per month with 12 months upfront interest retained.

Exit will be achieved through refinance onto a development finance product once pre-commencement conditions are satisfied.

Chris Ferguson said:

“This deal was misfiring and it was going to take a pragmatic and flexible lender that could get hands-on quickly. That’s why I contacted SDKA, I knew their flexible lending criteria, individual case approach and service levels would be the best option to restart this acquisition.”

Kunal Mehta, managing director of SDKA, added:

“When we were first approached the size and complexity of the deal was clear from the outset, and this is where we shine. It is imperative to look beyond the basic numbers and understand the applicants’ vision, and we enjoy sharing that journey.”

SDKA is an unregulated bridging lender offering products on Residential, Semi-Commercial and Commercial properties across England, Wales and Scotland.

The lender offers interest rates from 0.84% per calendar month, up to 75% LTV, with terms up to 24 months up to a maximum loan size of £10m.