Investec Structured Property Finance (“Investec”) has provided a £24m senior debt facility to Church Walk House Property Developments Ltd (“Church Walk”), a joint venture between Savills Prime London Residential Development Fund II and Epsilon Real Estate Partners.
The development funding will support a consented residential scheme at Church Walk, off Finchley Road NW3, which comprises 31 apartments and four townhouse units, together with parking and outdoor garden space. Works are expected to start in July 2017 at this well located site.
The funding by Investec releases capital utilised to acquire the site and provides finance for the development phase of the scheme.
Hayley Scott, at Investec, commented:
“Investec is a long-standing funder of residential developments, particularly in London, so Church Walk is a natural scheme for us to support. As illustrated, we are keen to lend on the right projects, and structure our funding to create value for our clients, including large institutions and private equity firms with knowledgeable and credible real estate JV partners. Having been able to structure and successfully achieve credit approval within a tight timeframe, our financing will help to get this scheme delivered as projected.”
Douglas Lister, of Epsilon REP Ltd, said:
“We are delighted to have concluded the financing for the development of this high quality new build scheme of apartments and houses at Church Walk which will be completed in 2019. The development includes well designed luxury homes with gardens, terraces and secure basement parking and will provide a range of accommodation ranging from one bedroom flats to four bedroom houses.”
James Whidborne, fund director at Savills IM, said:
“We’re very pleased to close out our first deal with Investec, and excited that Epsilon can now progress the project beyond planning. This is an important milestone for our Prime London Residential Development Funds; Church Walk being our eighth scheme in the delivery phase, with four further projects progressing through planning. We now have over 350,000 sq.ft consented and under construction across the two funds with a combined GDV of c. £500m.”
Investec has 35 years’ experience in the UK backing residential developments with a particular focus on London. Able to move fast in terms of funding approvals, Investec always works with high quality partners, many of which are repeat clients, whose reputation and track record are a priority. Investec provides flexible solutions across the capital stack, always supported by a senior team combining both banking and real estate experts.
The Prime London Residential Development Fund II is an opportunistic pooled Fund, which was launched in 2014 with a mandate to target Greater London development and planning opportunities. It is managed by Savills Investment Management, which had AUM of c. €18bn as at Q4 2016.
Epsilon specialises in the central London property market, developing and managing both commercial and residential assets. Epsilon has a proven track record of delivering high quality schemes as well as collaborating with investors and financial institutions.
Giles Barrie, Tom Gough, Richard Gotla
Tel: +44 20 3727 1575
Notes to editors:
About Investec Structured Property Finance
Investec Structured Property Finance was founded in 1994, providing bespoke development and investment funding expertise for experienced property professionals. With specialist knowledge across the residential, commercial, mixed-use and student accommodation sectors, Investec partners with experienced property entrepreneurs with a proven track record. Financing typically ranges between £5m to £75m, with Investec taking a realistic and flexible approach to evaluating project costs. During 2016 Investec lent in excess of £500m and anticipates a similar level of activity in 2017.
For more information, explore our Real estate finance offering