Gatehouse Bank has financed the redevelopment of a London office building into residential units with a £21 million facility.
The Islamic finance specialist has provided the finance to a vehicle managed by Al Mubarakia, a London-based developer. The deal will back the redevelopment of existing offices at Sovereign Court in the Wapping area of London into 124 one and two-bed studio apartments.
The scheme is expected to take nine months to complete, after which the completed units will be offered for rent.
“Demand for rental apartments in this part of London remains strong, and the location benefits from good transport links into the City and Canary Wharf. We worked closely with Al Mubarakia to complete this transaction in a timely manner,” commented Trevor Homes, head of real estate finance at Gatehouse.
“Sovereign Court is just the first phase of our larger plan, as we look to embark on a major redevelopment project of the area surrounding and including Tobacco Dock. Our vision is to create a sustainable, lively, mixed-use neighbourhood made up of leisure, residential, retail and commercial developments under the brand of ‘Tobacco Dock’,” a spokesman for Al Mubarakia said.
The transaction is the second financing which Gatehouse has completed since the start of 2016. Earlier this month, it provided £20 million of senior finance to Miflats, the private rented sector residential subsidiary of Criterion Capital, to finance 97 apartments in Bracknell.