LendInvest-backed, 23-unit development completes in central Nottingham
London, 24 March 2016 – A 23-unit residential development project financed by LendInvest, the leading short-term property finance lender, has completed in Nottingham city centre. The conversion project was developed by Crosslane Residential Developments Limited, a developer of small and medium scale residential projects.
The project is understood to be the largest office-to-residential development in Nottingham city centre for several years.
Crosslane Group, which is building a portfolio of new-build and office-to-residential conversions in city centres throughout the UK, purchased a five-story, 16,000 sq ft office block on Hounds Gate for £910,000. Within nine months, the company converted the site into 23 one and two-bedroom apartments marketed to professionals for between £100,000 and £350,000.
13 of the 23 flats were sold (subject to contract) before construction was completed. This high pre-completion demand demonstrates the marketability of these properties in the Nottingham area and the need for more good quality, good value housing in the city centre.
In a two-year deal, LendInvest lent Crosslane Residential £2 million based on a gross development value (GDV) of 50%.
Steve Larkin, Director of Development Finance at LendInvest, commented:
“There are very few examples of similar-sized residential developments happening in Nottingham city centre over the last few years. The success of this project proves the viability of the region’s residential market and will help to put Nottingham back on the map for developers. We look forward to providing more finance to experienced companies that can serve the huge demand for new homes in and around the city.
“Crosslane and LendInvest have already agreed a subsequent deal to fund a 3-unit conversion project in central Birmingham. This is the start of a long-standing relationship.”
Steve Goldstraw, CEO at Crosslane Residential Developments Ltd, added:
“Development projects on this scale are never without their challenges, but LendInvest was a partner to Crosslane and fully supportive throughout. Their professional team engaged with us openly and proactively to build the right funding structure, get the project off the ground and see it through to completion.”