Broadwood Capital completes £2.1m PCL acquisition loan

By Bridging Loan Directory 6th September 2023

Broadwood Capital, the alternative real estate lender, has completed its maiden loan in the Prime Central London (PCL) residential market.

The £2.1m facility has been provided to a High-Net-Worth developer to fund the acquisition of a property in a prime Covent Garden location, situated off The Strand and running parallel with Charing Cross Station.

The loan is secured by the 4,800 sq.ft., Grade II* listed property located on Buckingham Street, which has planning consent for a conversion from office space into a single residential townhouse.

The 12-month acquisition facility, at 70% LTV, provides the funding to support the purchase of the property, while allowing the developer’s professional team to progress the detailed design and prepare for construction.

Broadwood has significant in-house experience with PCL residential development and quickly understood the developer’s vision and business plan for the property.

Alastair Stanley, Director of Broadwood Capital commented:

“Broadwood is excited to be working with the developer and are looking forward to supporting the progression of the detailed design and pre-construction matters on this unique property.

It is widely expected that the PCL residential market will outperform the majority of other UK residential markets over the next five years we will be seeking similar opportunities as part of Broadwood’s core strategy.”

A spokesperson from the developer’s team commented:

“Broadwood immediately saw the value in the planning consent and the developer’s vision to create a stunning single residential property.

The Grade II* listing and conversion of an older building poses significant challenges which put off many lenders we approached.

Having worked with Broadwood’s senior team in the past I was aware of their detailed knowledge and experience in Prime Central London residential development.

They quickly understood the challenges, added value to developers’ business plan and took a very pragmatic approach to ensure the funding was in place.”