Caledonian Trust agrees loan for property development
Source - SMW
Caledonian Trust has agreed a loan of up to £360,000 with Leafrealm Limited to fund the anticipated construction costs on two new semi-detached houses at Brunstane Road South, Edinburgh.
Under the terms of the loan, Leafrealm will advance amounts to the company on a monthly basis to fund the ongoing construction costs for the development and to meet certified valuations approved by an architect each month.
Caledonian Trust has drawn down an initial tranche of £50,000 and anticipates drawing down further on the facility each month until construction of the two houses has been completed, which it expects to be in January.
Amounts drawn down under the loan will accrue an annual interest rate of 0.5% over the base rate.
Leafrealm is a company controlled by Caledonian Trust's chairman, chief executive and major shareholder Douglas Lowe.