Structured Property Finance deals

A track record of success

Residential Property Finance

Clapham, London

Monarch Square Holdings

Investec Structured Property Finance provided Monarch Square Holdings a predominantly South African backed consortium, with a £12.3 million stretched senior loan to fund the acquisition of 20 units in Clapham Junction, South West London from Peabody, one of London’s largest housing associations.

Bracknell

Comer Homes

Comer Homes was assisted with a £45m facility, for the development of the landmark Royal Winchester House. The 5-year facility involved development loans which converted to investment loans.

Docklands, London

Meadow Partners

We provided a £14.75m senior loan to Meadow Partners, an international real estate investor and asset manager, for the conversion of six mixed-use office and retail buildings, situated in London Docklands’ growing business district, into a high quality residential scheme. The 24-month facility financed the site acquisition and supported Meadow through the planning process. 

Kingston upon Thames, London

James Taylor Homes

James Taylor Homes, a niche residential developer focused on creating high quality homes in London and the home counties, was provided with a £25m term loan, to fund the redevelopment of the former Antoinette Hotel in Kingston upon Thames, south west London, into 89 residential units. 

Kings Cross, London

Brill Place Ltd

We provided Brill Place Limited, a joint venture (the “JV”) between ED Group and Hong Kong-based Prime Pacific, with a £35 million multi-tranche loan. The loan will fund the acquisition of a prime development site in Kings Cross, North London, and subsequent delivery of a luxury 22-storey residential tower.

Clapham, London

Monarch Square Holdings

Investec Structured Property Finance provided Monarch Square Holdings a predominantly South African backed consortium, with a £12.3 million stretched senior loan to fund the acquisition of 20 units in Clapham Junction, South West London from Peabody, one of London’s largest housing associations. The scheme, which was completed in 2016, is part of the first phase of a residential development on Peabody’s St John’s Hill estate, a major regeneration project transforming the 1930’s housing estate into a mixed-use public realm, whilst retaining the estate’s esteemed architectural heritage.

Monarch Square comprises a group of predominantly South African investors, looking to invest and externalise funds into the UK property market, alongside Shandon Property Group a London based high end property development, management and advisory business.    Monarch Square purchased just under 30% of the block, consisting of one, two, three and four bed homes, which are fully let and have been delivered to a high specification.  

Bracknell

Comer Homes

Comer Homes was assisted with a £45m facility, for the development of the landmark Royal Winchester House. The 5-year facility involved development loans which converted to investment loans.
The development is directly opposite The Lexicon, the recently opened retail & leisure centrepiece of Bracknell’s £750m regeneration scheme, transforming the area into an exciting, vibrant destination for the people of Bracknell Forest and the wider Thames Valley area. Bracknell is a popular commuter town, with Waterloo accessible in 60 minutes, sitting at the centre of the M3/M4 employment corridor which is home to a number of leading IT and technology businesses.

The 5-year loan is the second facility to we provided to Comer Homes, following a facility for 168 apartments in Harrow sold to a PRS operator in 2015.

Docklands, London

Meadow Partners

We provided a £14.75m senior loan to Meadow Partners, an international real estate investor and asset manager, for the conversion of six mixed-use office and retail buildings, situated in London Docklands’ growing business district, into a high quality residential scheme. The 24-month facility financed the site acquisition and supported Meadow through the planning process. 

The facility followed a £32.8m loan by us to Meadow in 2016 to help fund the acquisition of land and the development of an 84,452 sq ft data centre, in the same Docklands area. The bespoke loan structure allowed Meadow to refinance incumbent debt and to progress with its business plan of achieving planning for a 319 unit residential scheme.

Kingston upon Thames, London

James Taylor Homes

James Taylor Homes, a niche residential developer focused on creating high quality homes in London and the home counties, was provided with a £25m term loan, to fund the redevelopment of the former Antoinette Hotel in Kingston upon Thames, south west London, into 89 residential units. 
The 33-month loan, agreed at up to 53% Loan to Cost, will enable James Taylor to complete its second largest development to date, in a well located and proven market. 

We also supported the client through a challenging planning process to increase the number of units by 12%. Once completed, the residential units will benefit from great local infrastructure and amenities, as well as good journey times into central London on two separate railway lines.
We have been involved in numerous property development transactions with James Taylor over the last decade, including the Argo business Centre in Kilburn and 64 Lincoln’s Inn Field.

Kings Cross, London

Brill Place Ltd

The scheme is the first residential project for the JV’s newly formed fund, Paladin LBS UK Residential Fund I. LBS Properties will oversee the tower’s construction, in its capacity as development manager, with work due to begin in 2020 and expected to take just over two years. 

The development, located opposite St Pancras International station, will benefit from breath-taking views of the London skyline, as well as access to all the amenities that Kings Cross has to offer. The building also includes ground floor commercial space and cycle storage facilities in the basement, while the site itself is surrounded on three sides by open parkland.   Kings Cross is one of the best-connected locations in Europe, offering quick access to international, national and local transport links. Eurostar connections mean mainland Europe is just under two hours from St. Pancras International, and Euston will be the terminus for HS2 once it’s completed. It is also a station on the proposed Crossrail 2 line.

Commercial Property Finance

Ladbroke Grove

Buspace Studios

Investec Structured Property Finance provided an acquisition loan to support Warrior Property Group’s £13.5m acquisition of Buspace Studios, a former bus depot transformed into a modern serviced office business centre providing flexible space with approximately 51 units.

Hayes

Floreat Real Estate

Investec Structured Property Finance provided Floreat’s real estate team with a £19.3m five-year facility to support its acquisition of a 99,990 sq. ft. office building at The Old Vinyl Factory development in West London.

City of London

One Bartholomew Lane

Investec Structured Property Finance provided a South African group client with a senior loan to support its acquisition of One Bartholomew Lane in the City of London for £107m.

London & Edinburgh

SACO Apartments

Investec Structured Property Finance provided a £47.5m stretched senior facility to fund SACO’s development of two Serviced Apartment schemes in Aldgate, London and Edinburgh, Scotland, totaling 240 individual apartments.

Ladbroke Grove

Buspace Studios

The facility helps finance the site acquisition of the asset, situated in Ladbroke Grove, a growing hub for entrepreneurs and SMEs. The loan was issued to Warrior Property Group, a specialist London property developer & investor, within approximately a month from exchange, demonstrating Investec’s ability to provide financing solutions quickly.

The asset offers Warrior Property Group with both short term and long term asset management opportunities in the form of actively managing the existing site and various tenancies, as well as wider long term development potential as seen with a number of commercial schemes in the area. Changes in work trends as well as a growing number of SMEs looking to adapt their workforce have driven the demand for flexible workspace solutions. This structural trend coupled with shorter lease contracts and quicker lease turnarounds has increased appetite by developers and investors with flexible workspaces; an asset class expected to grow by 30% annually for the next five years according to research published by JLL.

Hayes

Floreat Real Estate

Floreat, the independent and privately-owned investment group, has bought the Shipping Building in Hayes which sits within one of the capital’s most significant regeneration schemes and is set to benefit from the arrival of Crossrail. The building is let to seven occupiers including Air transport technology leaders SITA, wireless hi-fi pioneers Sonos and global IT providers CHAMP Cargo Systems. Floreat plans to refurbish some of the office space and capture future reversion.

The multi-let building is located five minutes’ walk from the Hayes & Harlington Crossrail station which opens in 2018, with fast access by rail to both Central London (Paddington 15 minutes) and Heathrow (nine minutes). The wider £250m regeneration of The Old Vinyl Factory will comprise 642 residential units, 500,000 sq. ft. of office space and a variety of restaurants and shops once complete.

City of London

One Bartholomew Lane

The Grade A office building, redeveloped in 2010 behind a retained historic façade, comprises 79,838ft² over 13 floors and is fully let to 11 tenants, a mix of technology and financial services companies, with a WAULT of four and a half years to expiry.

Opposite the iconic Bank of England, One Bartholomew Lane’s prime location in the world’s leading financial and international business market makes it a highly desirable asset.

London & Edinburgh

SACO Apartments

Investec Structured Property Finance provided a £47.5m stretched senior facility to fund SACO’s development of two Serviced Apartment schemes in Aldgate, London and Edinburgh, Scotland, totaling 240 individual apartments. Development works for the Hammersmith project completed in July 2016. The scheme includes 55 residential units, ranging from studio apartments to 3 bedroom townhouses, and 2,300 sq. ft. of retail space.

The Wimbledon scheme comprises 58 residential units, ranging from single bedroom to 3 bedroom apartments, 6,600 sq. ft. of office space and 23 basement car parking spaces. The development completed in September 2016. Linden Homes is the house building division of Galliford Try plc and is the fifth largest residential developer in the UK, delivering about 3,000 houses and apartments each year. Investec partnered with and assisted Linden Homes by providing a flexible joint venture funding structure on these well-located opportunities.

Student Accommodation Finance

Colchester, Essex

Elmstead Road

We provided The Osborne Group, the established UK construction company, with an £8 million, 3-year loan, to fund the development of 135 purpose-built student accommodation beds in Colchester, Essex. The loan also includes an investment term providing certainty for the borrower and helps reduce refinance costs. 

Guilford

Scape Surrey 2

Investec Structured Property Finance provided a joint venture between Scape UK and HG Construction with a £53.5 million senior debt facility, to fund the development of 403 purpose built student accommodation (‘PBSA’) beds, and 113 Co-Living units in Guildford.

Coventry, Swansea, Portsmouth

Crosslane and Harrison Street

Investec provided a £59.3m loan to a joint venture between Harrison Street Real Estate and Crosslane Student Developments for the development of three purpose-built student accommodation assets totalling over 1,100 beds.

Bournemouth

Curlew Student Trust

Investec Structured Property Finance provided a £23.6m senior debt facility to Curlew Student Trust. This facility will take the development to completion in August 2017 and then provide a subsequent 18 month investment loan.

Belfast

Student Real Estate

Investec Structured Property Finance announces it has agreed to provide a £24m senior debt facility to RSRE, a fund focusing on Purpose Built Student Accommodation, for the development of a 474-room purpose built student accommodation in Belfast.

Colchester, Essex

Elmstead Road

We provided The Osborne Group, the established UK construction company, with an £8 million, 3-year loan, to fund the development of 135 purpose-built student accommodation beds in Colchester, Essex. The loan also includes an investment term providing certainty for the borrower and helps reduce refinance costs. 

The scheme, Elmstead Road, will serve the 15,000 student University of Essex and is adjacent to the main campus. Scheduled to open for the start of the 2020/21 academic year, it will cater primarily to second and third year students. 15 townhouses will deliver 123 beds, a mixture of studios and clusters, with an additional studio block containing a further 12 beds. The scheme also benefit from a common room, reception area, laundry and a bike store. 

Guilford

Scape Surrey 2

The scheme, Scape Surrey 2, sits on the east border of the main University of Surrey campus and is scheduled to open for the 2020/21 academic year, with the Co-Living element following in 2021. This is the second Scape Surrey development in Guildford. Scape Surrey 1, directly adjacent to the new scheme, has achieved 100% occupancy across its 141 beds since opening for the start of the 2016/17 academic year, and it is the most oversubscribed property in Scape’s student portfolio.

The scheme will be finished to a high quality ‘Scape’ specification throughout, with emphasis on communal space for students to share and socialise with their immediate neighbours. Amenities will include a large break-out reception area, cinema room, open plan kitchen area, laundry rooms and outdoor area, with similar facilities for the Co-Living tenants.

Coventry, Swansea, Portsmouth

Crosslane and Harrison Street

Investec provided a £59.3m loan to a joint venture between Harrison Street Real Estate and Crosslane Student Developments for the development of three purpose-built student accommodation assets totalling over 1,100 beds. The assets are located in Coventry, Swansea and Portsmouth and will all be delivered in time for the 2019/20 academic year.

Upon completion the schemes will be managed and operated by Prime Student Living (a Crosslane Group company). Investec is also providing an investment period following the end of the development phase allowing the client to focus on lettings and stabilising the assets.

Bournemouth

Curlew Student Trust

Investec Structured Property Finance provided a £23.6m senior debt facility to Curlew Student Trust. This facility will take the development to completion in August 2017 and then provide a subsequent 18 month investment loan. The scheme comprises of a 454-bed Grade-A scheme in Bournemouth and an additional 2,000 sq ft retail unit.

Located on Christchurch Road, which is just a short walk from both of the city’s higher education campuses, the development is scheduled to open for the start of the 2017/18 academic year. This is Investec’s second deal with Curlew Student Trust, bringing total lending to £71m. Backed by clients of CBRE Global Investment Partners, this deal further demonstrated the appetite from private equity investors for the sector.

Belfast

Student Real Estate

Investec Structured Property Finance announces it has agreed to provide a £24m senior debt facility to RSRE, a fund focusing on Purpose Built Student Accommodation, for the development of a 474-room purpose built student accommodation in Belfast. The 40 month loan comprises a 16 month development period and a subsequent 24 month investment period.

It is the third deal Investec has done in the Northern Irish capital, driven by the continued favourable supply-demand dynamics. RSRE is a leading global commercial real estate investor and fund manager focussing in the PBSA sector.

Mixed-use and Industrial

 

Cheshire

Novus Site

Investec Structured Property Finance provided a £11.26 million 24 month loan to Chancerygate, the UK’s largest multi-unit industrial property developer and asset manager. The facility will fund the development of nine industrial units at the 252,000 sq ft Novus site in Knutsford, Cheshire. 

Brighton

Edward Street Quarter

Investec provided mixed‐use developer First Base and Patron Capital, the pan-European investor focused on property-backed investments, with an £35 million, 3-year loan, to fund the speculative development of a commercial scheme in Brighton that is set to transform the city centre. 

Kings Cross

The LabTech Group

Investec Structured Property Finance provided The LabTech Group, the Digital and Real Estate Development and Investment business owned by Israeli billionaire Teddy Sagi, with a £72mn loan to fund the development of a major 140,000 sq ft mixed-use scheme in King’s Cross, London.

Mitcham, South London

Valor Real Estate Partners

Investec Structured Property Finance provided Valor Real Estate Partners the pan European logistics and industrial real estate investor, with a £27 million senior loan, to fund the speculative development of a 153,000 sq ft Grade A urban logistics park in Mitcham, South London.

Shoreditch, London

St Michael & All Angels Church

Investec Structured Property Finance provided an £3.5m facility to help finance the acquisition of a grade 1 listed Church in Shoreditch, London. The facility was provided within a short time frame enabling our clients to secure the grade I listed former St Michael & All Angels estate Church built in 1865.

Cheshire

Novus Site

Investec Structured Property Finance provided a £11.26 million 24 month loan to Chancerygate, the UK’s largest multi-unit industrial property developer and asset manager. The facility will fund the development of nine industrial units at the 252,000 sq ft Novus site in Knutsford, Cheshire. Expected to complete in late 2020, Phase 1 of the site totals 130,000 sq ft of space, with the flexible units, suitable for a range of occupiers, ranging from 4,000 sq ft to 30,000 sq ft. Chancerygate has already disposed of more than half of the available units, having  agreed the sale of four units totalling 23,383 sq ft and secured a pre-let with Sytner Group, the UK’s leading car dealer, for a 30,000 sq ft unit.

Novus is situated on the established Parkgate Industrial Estate in Knutsford, North Cheshire, and provides a mix of industrial warehousing and office accommodation. Spread over 16 acres, the site benefits from excellent transport links, with both junction 19 of the M6, the major arterial route connecting Birmingham and Manchester, and Manchester International Airport just a short drive away.

Brighton

Edward Street Quarter

The Edward Street Quarter project will see the £120 million redevelopment of the former AMEX House in Brighton city centre. As well as 110,000 sq ft of Grade-A workspace for Brighton’s burgeoning creative and media sectors, including a significant coworking element, there will be 40,000 sq ft of leisure space and 168 new homes, a mixture of for sale and Build-to-Rent.

McLaren Construction, with whom Investec has worked with on a number of previous developments, will be responsible for construction phase, with the scheme expected to complete by Autumn 2021. For more information please contact Daniel Carlisle 

Kings Cross

The LabTech Group

This scheme is located on Camley Street, adjacent to King’s Cross Central, Europe’s largest regeneration project, where planning consent has been granted to develop 121 one, two and three-bed luxury apartments and 29,000 sq ft of co-working space. The apartments will be let and operated by LABS LIVE, and the flexible office space will be provided under the LABS co-working platform.

LABS LIVE and LABS are Sagi’s respective PRS and co-working platforms and this transaction represents the first scheme where they will come together to offer customers a residential and working solution, becoming the first provider to offer both in the same building. Initial works have commenced on the scheme and practical completion is expected in 2020.

Mitcham, South London

Valor Real Estate Partners

The 48-month loan, agreed at up to 65% Loan to Cost, will support Valor through the planning, development and stabilisation periods. Valor acquired the site in January 2019 and proposes to redevelop the existing c. 110,000 sq ft estate into modern trade counter and mid box units ranging from 5,000 sq ft to 85,000 sq ft, suitable for a diverse range of occupiers. The site also has the potential to cater to single tenant build-to-suit requirements.

The well-located site benefits from excellent vehicular connectivity to both central London, which is less than nine miles away, and Greater London via the A23 and M25. At the same time, industrial supply is at record lows following conversion to alternative uses, particularly residential, thereby offering significant opportunity to capture rental growth over the medium term.

Shoreditch, London

St Michael & All Angels Church

The loan has been structured to provide flexibility, allowing the implementation of a redevelopment plan during the loan term. This will involve seeking planning consent for the re-development of the Church into an office building, which has been operating as a retail/office space for the past 40 years, as well as new office building in the Church yard space.

The joint venture between Vincent Goldstein (founder of VFund) and Henry Smith (founder of Aitch Group) enabled both to acquire a strong asset with value enhancement potential via future re-development.

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