Assetz funds the development of 12 London homes
RAA Developments has secured £4.2m worth of funding from peer-to-peer lender Assetz Capital to support the development of 12 homes in London, amidst the shortage of affordable housing in the capital.
The London-based private real estate company, which focuses on acquiring and developing properties in metropolitan areas, has secured two facilities. A £1.9m facility to fund four residential properties in Brockley, and an additional £2.3m for the development of eight new homes in Sutton.
The capital has struggled with rising housing prices in recent years, with the average house price in 2015 standing at £472,000 – 13.5 times London’s average annual wage. It is estimated that, in order to meet the demand for accommodation in the city, 66,000 homes would need to be built per annum. Sadiq Khan, Mayor of London, described the lack of affordable housing and high cost of living as “a block to improving productivity and increasing growth”.
With over 20 years of experience in visualisations, refurbishment, design and new build properties, RAA Developments has an excellent track record of providing residential properties in the South. In recent years, the business has completed properties in Gillingham and Tunbridge Wells.
This deal follows a number of other development loans financed by Assetz Capital across the UK. The firm provided £10m of funding to 9 Property Group to develop a student accommodation complex in Nottingham, and almost £2m to support Mitty Group’s two new residential and leisure sites in Merseyside.
Andrius Augunas, Chief Executive of RAA Developments, said:
“Assetz Capital was incredibly supportive of our proposition, and with this funding, we are able to build 12 state-of-the-art homes just outside of the capital.
“We were entirely new to peer-to-peer lending, but Assetz exceeded all expectations and delivered two excellent facilities in a short timeframe. The speed of delivery and specialist knowledge of the team places Assetz Capital above any lender I have previously come across, and I look forward to continuing our work with the firm.”
Mark Davidson, Regional Relationship Director at Assetz Capital, said: “Everyone is aware of the housing shortage in London and how this brings a challenge to prospective buyers in the region looking to get on the property ladder. With this in mind, it is important that lenders make funding available to developers looking to boost new builds in the city.
“RAA Developments is a fantastic business, building high quality houses in the South, and we are proud to support its latest venture. This deal indicates a strong start to the new year and we will continue to provide vital funding to other ambitious developers across the UK.”