Investec Structured Property Finance has provided a £30 million development loan to support the construction of a residential scheme in Fulham, south west London.
The two-year loan has been written to Meyer Homes, a London-based residential developer which is aiming to develop schemes on 13 sites which were acquired from Tesco’s property company Spenhill in October 2015.
The loan finances the development of the Bishops Gate scheme comprising 58 residential units and 9,000 square feet of retail on a one-acre site on Fulham High Street. The scheme contains 48 apartments, of which six will be classed as ‘affordable’, plus ten townhouses. Completion is expected in Q2 2018.
Investec said that 90 percent of the apartments will have a market value below £1 million, with the townhouses expected to go on sale at £2 million-plus.
“Funding prime residential development in London is an area we have significant experience in. The opportunity to partner with a globally-funded real estate developer such as Meyer Homes on a prestige development, in a strong location and at attainable pricing, is a welcome one,” commented Stephen Martin of Investec’s structured property finance team.
“The result of the recent referendum, as well as the punitive Stamp Duty Land Tax surcharge introduced by the last government, has seen temporary falls in investment in prime residential; however, 2017 is likely to see plenty of opportunities for flexible and innovative lenders like ourselves to work alongside ambitious developers such as Meyer Homes to deliver schemes like this one, and take advantage of a reduced supply of this type of product,” Martin added.