Savills Investment Management (IM) and Urbanwise have secured debt financing for two major residential schemes in south London with a combined development value of £115m.
In the largest of the two funding deals, Cheyne Capital has provided a £39m loan to finance the development of Callis Yard, Woolwich, into a 150-unit scheme with a gross development value of £75m.
Cheyne loan originator Arron Taggart said that the whole loan offered “an attractive risk-adjusted return profile” and that the development’s location 400 metres from the forthcoming Woolwich Arsenal Crossrail station “reinforced our conviction in the strength of this scheme”.
In the other deal, QIB UK, the UK subsidiary of Qatar Islamic Bank, has provided a £26.2m loan for a 100-unit scheme called Grafton Quarter in Croydon, which has an end value of £40m.
In addition to the flats, the development will also contain studios for artists and start-ups.
Savills IM and Urbanwise acquired both sites in 2015. They have since obtained detailed planning permission and begun construction work.
Urbanwise director Keith Ewart said that the company and its JV partner Savills IM were “very excited about both schemes for a variety of reasons”.
He highlighted “the continuing positive changes to the Croydon area as the regeneration process moves westwards, as well as the vastly improved connectivity the new Elizabeth line will afford our Woolwich scheme”.
James Thomlinson, a partner at Voltaire Financial, which sourced the finance for the schemes, said: “Appetite remains from a range of providers of debt capital for feasible schemes in the right locations.
“The strength and track record of the borrowing entity is as crucial as ever. Equally important is selecting lenders with a proven record in supporting speculative residential development.”
Savills IM’s investment in both projects was made through its Prime London Residential Property Fund II. The fund has focused on fringe locations in the capital with a shortage of housing.
20 December 2016
27 July 2015
19 May 2015