Pallas Capital completes £3.9m refinance to unlock second phase of Shropshire development

29 September 2026

Pallas Capital has completed a £3.9m development loan to refinance the completed first phase of a developer's residential scheme near Market Drayton, Shropshire, and fund construction of the scheme's second phase.

The 16-month loan, structured at 65.5% LTGDV, refinances the completed first phase of the Shropshire development and funds construction of the second phase, taking the scheme's total unit count to eight.

The borrower is an experienced developer and contractor with a strong track record delivering residential schemes in the local area, having already completed the first phase of the Shropshire site before bringing the scheme to Pallas Capital to fund the next stage of construction.

Pallas Capital restructured the loan when the valuation was received, taking the borrower's existing residential portfolio in Stone, Staffordshire as additional security and revising the solicitor and valuation instructions to keep the deal on track, while also managing the handover from the borrower's previous lender to help avoid penalty charges as that facility ran over term.

Led by Mark Witherington, Senior Originator at Pallas Capital, the team benefited from an existing working relationship with the professional teams: the monitoring surveyor had previously worked with the borrower under their former lender.

Once terms were agreed, the loan was completed within roughly four weeks, following a broker introduction.

Mark Witherington, Senior Originator at Pallas Capital, commented:

"This deal is a good example of what we try to bring to every transaction: staying close to the borrower and working out a structure that fits, rather than defaulting to no when something doesn't tick the standard box. It's the kind of hands-on underwriting that development finance tends to need, and it's a big part of how we've built our reputation with brokers and developers since launching.

We're pleased to have got the development moving into its next phase, and we look forward to continuing to support the borrower as the scheme comes to market. It's exactly the kind of relationship we want to build more of as we grow our presence in regional development finance."

Units from the completed phase are being brought to market for sale as the scheme progresses, with Pallas Capital continuing to support the developer through the next stage.