OakNorth and Cogress partner on £13m development finance deal
OakNorth – the bank for entrepreneurs, by entrepreneurs – has partnered with Cogress, the private equity firm for property, on a £13m deal to Carlton James, a developer who’s successfully completed projects in Hoxton, Islington and Shoreditch.
The 13 flats will be spread across five floors and will range from one, two and three bedrooms with private balcony space, as well as four duplex penthouses – two of which will have their own private rooftop terraces. With a targeted exit date of December 2019, the 21,442-sq. ft. site at 35 Shore Road, Hackney, is expected to sell for £16.6m. Cogress will be working with Gold Section Developments, a leading east London based real estate investment and development specialist, on the project.
Hackney has made a name for itself as one of London’s most in-demand boroughs, with average house prices rising by 700% over the past two decades. The Shore Road site, with its proximity to the lush green of Victoria Park and the thriving Broadway Market, looks set to benefit from the price uplift in the East London area.
Ben Barbanel, Head of Debt Finance, and Surinder Sidhu, Debt Finance Director at OakNorth, commented:
“Hackney has experienced rapid economic growth over the past 15 years, with the number of businesses having increased by 40%, representing 17% higher growth than the London average. Particularly in the last 12-18 months, the wider Hackney borough has transformed into one of the most popular in London. Given the under supply and over demand in the ‘core’ city fringe, the likes of Aldgate, Whitechapel and Hackney have seen an increase of tenants and business owners migrating further East seeking a more affordable offering.”
Tal Orly, Founder & CEO of Cogress UK, continued:
“We are thrilled to expand our east London property portfolio and bring to our network of qualified investors the best possible investment opportunities in one of the capital’s most in-demand boroughs. Brexit, inflation levels and high stamp duty rates for second time buyers are some of the issues slowing the market. However, there are pockets in London that still show strong growth and Hackney with its vibrant community is definitely one of them, still remaining a very attractive investment opportunity.”