Whitehall Capital grants £2.7m loan for £4.5m mixed-use property in Plymouth

By Bridging Loan Directory 16th September 2019

Whitehall Capital Fund (‘Whitehall Capital’ or ‘the Company’), the specialist commercial and residential property bridge financing fund, is delighted to announce that it has completed a £2.7m loan for a mixed-use residential and commercial development, valued at £4.5m, in Plymouth, Devon.

The diversified scheme will offer student housing, office and retail space covering more than 33,500 square feet, thereby de-risking the development and tapping into the current market demand in Plymouth. Given the Fund is working with an experienced developer with a proven track record, the loan’s risk profile has been deemed moderate/low. The loan has a tenor of 12 months and covenants include that the Loan to Value (‘LTV’) ratio must not exceed 70%.

Whitehall Capital, part of the Amram Capital Wealth Management group, issues short term loans (normally 3 to 12 months) that are primarily secured against residential UK property although properties may be residential, commercial, mixed-use or land with planning permission. It ideally targets loans secured against properties valued at between £1m and £10m. The majority of loans are in the £1-5m range. The fund only lends against properties in the UK and has a conscious bias towards big cities – London, Manchester, Birmingham etc. Its current focus area is outside central London but within the M25, but it is actively looking to be a more national lender of choice for its target market.

The loan target net return to investors is between 10% to 12% per annum.

Since its establishment in March 2017, the Fund has delivered a net return of 18.15% on loans, significantly outperforming many stock markets and hedge funds.

It recorded a return of 2.63% in the April-June period this year – its best quarterly performance since it was established – and posted a strong first half to this year, being almost fully invested for most of the period and delivering a return of 5.2%. Its performance is particularly satisfying in light of the property market slowdown and overall low transaction volumes.

Christopher Khoi, pictured, Partner at Whitehall Capital, said:

“We are thrilled to have partnered with this developer on such an exciting new project and to be expanding our business footprint across the country. This project benefits from a fantastic location in the heart of the city and just minutes away from the main university campus, railway station and Plymouth’s prime retail area. The mixed-use property will improve both the student accommodation and office space offering in the city as well as complementing its vibrant shopping district.”