OakNorth completes £48.3m loan for new mixed-use scheme in Queensway

By Bridging Loan Directory 9th July 2024

OakNorth the digital bank for entrepreneurs by entrepreneurs, has provided a £48.3m loan to London based Vabel, to develop a major new mixed-use scheme at 28-34 Queensway in West London.

In addition to 27 new homes, the development will offer a 24-hour concierge, fully landscaped residents communal gardens with outdoor seating and water features, as well as 251 sqm of retail at ground level. The project is scheduled to complete by Q4 2025.

Founded in 2009 by Daniel Baliti and Jeremy Spencer, Vabel set out to do things differently with a vision to revolutionise the quality of new build homes and how they’re conceptualised, designed and built.

Today, the business has a team of approximately 40 people – including in-house architects, interior designers, project managers and construction managers – all of whom work under one roof, collaborating within an innovative and powerful operating model.

In addition to Vabel’s uniquely integrated process, it is also sets itself apart through its considerate construction approach, building homes with renewable technologies, such as: LED lights which save up to 90% energy compared to a traditional bulb, aerated taps to reduce water flow and cut water usage, heat recovery ventilation systems to circulate fresh filtered air, solar panels to generate renewable energy, and thermally efficient glazing, zonal underfloor heating, and air source heat pumps to control room and water temperatures more efficiently.

Its development in Blackheath will be its first to have a ground source heat pump system, enabling the building to extract heat from the ground and use it to heat the underfloor heating systems and water.

Where possible, the team also recycle building materials such as bricks and use lime mortar, which has a much longer lifespan than cement and absorbs CO2 from the atmosphere during its curing process, as well as aim to retain existing building fabric where possible.

Jeremy Spencer and Daniel Baliti, co-founders of Vabel, commented:

“We are excited to bring our experience and learnings to this exciting address and make a positive contribution to the area through designing and delivering exceptional architecture and homes.

With significant redevelopment of Queensway underway, the area is re-energising its reputation as a vibrant, multi-faceted community, so we’re thrilled to be an important part of this evolution.

This is our largest project to date, so we’re grateful to the team at OakNorth for their ongoing support.

Their understanding of the London real estate market is second to none and the experience was in a different league to what we’ve experienced with other banks.”

Deepesh Thakrar, Senior Director of Debt Finance at OakNorth, continued:

“For the last 15 years, Vabel has been delivering successful projects across London with a steady track record of both small scale and larger developments.

The business launched during one of the most challenging years in the market’s history – 2009 – when developers were addressing the need for more homes, but not necessarily considering the design, function, or how people would live in the spaces.

Vabel’s unique operational model integrating architecture, construction, and project management under one roof, as well as its approach to responsible development, stood out during our Credit Committee.

We’re delighted to be supporting the business’ growth, bringing dozens of new homes to a central part of London that’s undergoing a vibrant and exciting transformation.”