OakNorth completes £1.4m loan to support the acquisition and redevelopment of vacant residential and office building in Fitzrovia

By Bridging Loan Directory 13th January 2025

OakNorth, the digital bank for entrepreneurs, by entrepreneurs, has provided a £1.4m loan to fund the purchase of a 2,690 sq. ft, vacant residential and office building in Fitzrovia, central London.

The four-storey site will be fully refurbished and will consist of four one-bedroomed apartments, offering new kitchen and bathrooms for residents, as well as two floors of modern office space, located on the ground floor and basement.

Situated in the popular area of central Fitzrovia, the site is walking distance from several London underground stations, including Goodge Street, Tottenham Court Road and Oxford Circus, as well as from many of the capital’s main tourist attractions.

The project is being led by Parag Sawheny, Founder and Managing Partner of Penn South Capital, and Yoni Karako, Founder of Courtier Capital.

Parag founded Penn South Capital in 2014, which specialises in redeveloping and repositioning existing assets for value-add purposes, including multifamily properties within major cities across the US.

Yoni established residential real estate investment and management firm, Courtier Capital, in 2021, where he led acquisitions exceeding $100 million within the first seven months.

Yoni Karako, Director of 52 Tottenham St, Fitzrovia Ltd, commented on the transaction:

“Given OakNorth’s reputation for supporting entrepreneurial property developers in London and across the UK, we knew they were the right banking partner for this project.

Priya and the team are experts in London’s real estate market and are highly commercial and transparent in their approach, which enabled us to complete the transaction in just 10 days, following credit approval.

We are thrilled to develop this new mixed-use asset in prime central London, which will be popular amongst the capital’s rental market and businesses looking for modern office space.

London’s current market environment offers a limited-time opportunity, and we are committed to acquiring and adding value to residential properties throughout 2025.

We believe in the resilience of London and its capacity to thrive in the face of challenges.”

Priya Chauhan, Director of Debt Finance at OakNorth, added:

“This transaction represented an exciting opportunity to support a highly experienced team with their first UK real estate project.

Both Yoni and Parag are industry stalwarts with very successful track records, and we’re delighted to fund the acquisition and redevelopment of their Fitzrovia site.

We look forward to watching the development take shape over the coming months, as well as supporting Yoni and Parag on future projects going forward, as they look to build out their UK portfolio.”