Investec to provide £30m development finance to Meyer Homes
Investec Structured Property Finance has agreed to provide a 24 month, £30 million financing facility to Meyer Homes for the development of 58 residential units and 9,000 sq ft of retail in Fulham, South West London.
Stephen Martin, at Investec, said:
“Funding prime residential development in London is an area we have significant experience in. The opportunity to partner with a globally funded real estate developer such as Meyer Homes on a prestige development, in a strong location and at attainable pricing, is a welcome one.
“The result of the recent referendum, as well as the punitive Stamp Duty Land Tax surcharge introduced by the last government, has seen temporary falls in investment in prime residential; however, 2017 is likely to see plenty of opportunities for flexible and innovative lenders like ourselves to work alongside ambitious developers such as Meyer Homes to deliver schemes like this one, and take advantage of a reduced supply of this type of product.”
The approximately one acre Fulham High Street plot was acquired by Meyer Homes in 2015 and will deliver a total of 58 units, comprising 48 apartments, of which six will be affordable, as well as ten townhouses. 90 per cent of the apartments will have a market value below £1 million, with the townhouses expected to go on sale at £2 million plus.
With demolition, ground and contamination works and the installation of a basement car park already completed, construction has commenced, with unit completion targeted for Q2 2018.
The development is served by excellent transport links; both Putney Bridge tube and Putney overground are within a 15 minutes’ walk. Residents will benefit from a wide range of local amenities, whilst being a short walk from Bishops Park, a Grade-II listed, 22-acre park.
Paul Rosbrook, finance director at Meyer Homes, added:
“We are delighted to be working with Investec. The Investec team gained a good understanding of the scheme enabling them achieve our funding requirements and meet the agreed tight deadline for drawing the facility. Bishops Gate, Fulham, gives us an exciting opportunity to start building our third development in a prime location with exceptional specification.”