London residential specialist Mount Anvil has sourced £70 million of debt for its next development scheme in the capital with Royal Bank of Scotland.
RBS is providing the loan for Hampstead Manor, the former King’s College London student residence at Kidderpore Avenue in Hampstead which Mount Anvil bought last year.
Development of the site, in one of the capital’s strongest locations, will be a mix of conversion and new infill across 11 buildings to provide 125 houses and flats. One-bed apartments will be priced from £750,000.
Residential development finance has become more difficult to source in central London this year due to a softening sales market, but is still available for the best schemes and sponsors.
“Funders remain selective, and in our experience will consider the credentials and track record of the developer, the location and type of product being provided and the sales prices (both pounds per square foot and capital value) as part of their assessment of the lending”, said Mount Anvil director of marketing Jon Hall.
The company is a long-standing client of RBS which previously financed The Eagle, Mount Anvil’s redevelopment of a tower in City Road, EC1 as 276 flats, which was recently completed.
Also key to the financing was RBS’s willingness to provide a bespoke package for the client.
Phil Hooper, head of residential development finance at RBS, said: “£70m is a nice size ticket for us and we’re the sole bank which shows our commitment to Mount Anvil and the scheme”.
Hampstead Manor’s first homes will complete in Q4 2017. Hall said: “We will launch in September this year. Hampstead Manor will complement our current portfolio of live schemes which includes Dollar Bay in Canary Wharf, Queen’s Wharf in Hammersmith, Keybridge in Vauxhall, The Landau in Fulham and Lexicon in Islington.”
The developer has a pipeline of 2,500 homes which it plans to deliver by 2018. Headed by Killian Hurley, it has backing from US private equity group Ares Management.