Investec Structured Property Finance (“Investec”) announces that it has agreed to provide 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.
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.
Daniel Carlisle at Investec Structured Property Finance, commented: “Edward Street Quarter is one of the most ambitious regional redevelopments in the UK, and reflects Investec’s growing reputation as a lending partner of choice for transformational placemaking schemes which incorporate the latest trends in how people want to live and work. First Base is an established property developer with a strong track record and the support of a major institutional investor in Patron Capital; we hope this is the start of a long and successful relationship.”
The Brighton office market was one of the UK’s top performing regional markets in 2019, characterised by a lack of good quality development and strong employment forecast. The Brighton residential market is also expected to see strong capital growth in the medium term, driven by high demand.
Steve Eccles, Project Director at First Base, commented: “Starting on site at Edward Street Quarter is a significant milestone as we move forward the delivery of Brighton’s largest speculative office scheme for over two decades. Working with Investec and Patron Capital we are bringing to market much needed workspace, helping to retain Brighton’s thriving business community, while delivering a renewed city centre neighbourhood.”