Investec Structured Property Finance (“Investec SPF”) and Capital A Finance Plc (“Capital A”), today announce that they have completed a joint £26.9million debt facility to support a residential redevelopment scheme on High Street Kensington, for English Rose Estates Limited, a boutique London-focused developer. In addition to this debt facility, further mezzanine finance will be provided by Contour Capital.
The facility will be used to fund the acquisition and conversion of the upper floors of 151-161 High Street Kensington into 27 apartments of varying sizes over a total of 24,500 sq. ft. The proposed conversion has already received planning permission and is due to be completed in the Spring of 2015. The redeveloped property has an estimated gross development value in the region of £50million.
Investec SPF, a provider of development and investment finance for commercial, residential and mixed-use schemes, has supported its clients with facilities to the value of £80million during September. Capital A, the specialist real estate debt provider, has closed more than 20 transactions in the past 12 months and has a total committed loan book of around £250million.
Simon Brooks at Investec SPF, said:
“The redevelopment of this property on High Street Kensington is an impressive and exciting conversion of what is a highly sought-after, prime residential location. At Investec, we are committed to funding good projects and with English Rose Estates’ proven track record in successfully delivering these types of schemes, we were keen to provide development finance at a time when capital remains limited, particularly for projects over £20million. Both English Rose Estates and Capital A are established partners of ours and we are delighted to have had this opportunity to work with them again on this deal.”
Daniel Austin, Chief Executive at Capital A, said:
“We are delighted to have worked with Investec and English Rose Estates to close another successful transaction. With strong real estate expertise, access to fluid capital from private sources, and an appetite to structure complex transactions, we are in a unique position within the real estate debt market. We are continually looking at opportunities and look forward to closing further deals in the coming months.”
Ben Fugler, Director at English Rose Estates, said:
“The purchase of 151-161 High Street Kensington is entirely consistent with our recent acquisition drive for prime central London real estate with residential development potential. Given its location, the asset has particularly wide ranging appeal across both international and UK markets. Our recent experience suggests that international appetite for this kind of product is, if anything, gaining pace. Applications for pre-sales have been coming in even before completion had taken place and we anticipate only a limited release of the remaining units in Singapore and Hong Kong during the final quarter of 2013.”
Scott Harvey, Managing Director at Contour Capital, said:
“This transaction exemplifies the innovative ways in which the property finance market has evolved. Moreover, we are delighted to have partnered with Capital A and Investec to provide funding support to English Rose Estates in this exciting project. This is a further example of Contour Capital supporting strong development teams and senior debt partners. We are looking forward to funding further opportunities with all three parties in the near future.”