Hampshire Trust Bank completes £7.24m development finance loan for Central London redevelopment

By

Neil Leitch HTB

Hampshire Trust Bank (HTB) has successfully provided a £7.24 million development finance facility to support the acquisition and redevelopment of a prominent site in Elephant and Castle, Central London.

The funding enabled the construction of a two-storey vertical extension, renovation of existing units, and enhancements to the building’s façade. Upon completion, the project will deliver 23 apartments.

HTB provided the £7.24m loan against an £11.15m Gross Development Value (GDV), representing 65% Loan-to-GDV (LtGDV).

The borrower, an experienced developer, used the funding to acquire and redevelop the site.

The transaction involved several complexities, including:

  • Securing Vacant Possession: The borrower required vacant possession, which involved bailiff intervention, with a strict seven-day timeline for completing the acquisition once vacant possession was achieved.

  • Vertical Extension Requirements: Additional structural considerations were necessary, including managing over-sailing licences, party wall awards, and agreements for ‘Right of Light’ easements.

  • Share Purchase Structure: The acquisition was structured as a share purchase of the existing corporate owner.

HTB worked closely with both the advisor and borrower to navigate these challenges, ensuring the funding was delivered on time.

Neil Leitch, Managing Director of Development Finance at Hampshire Trust Bank, said:

“This deal brought together several challenging elements, vacant possession, structural hurdles with a vertical extension, and a share purchase.

By working closely with the advisor and borrower, we tackled each issue head-on and ensured the funding was delivered on time.

It’s a prime example of HTB’s commitment to finding practical solutions and making even the most complex projects happen.”

James Mole, Director at J3 Advisory, added:

“This was a unique and complicated case, and it took terrific teamwork and coordination to get it over the line.

Some lenders might have struggled with the complexities involved, but I was confident that HTB would tailor a solution for the client, and they more than delivered.

I look forward to working with them again to support my developer clients in the future.”

The project reflects HTB’s commitment to supporting brokers, advisors and developers in delivering complex redevelopment projects.

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