Investec Structured Property Finance is to provide a joint venture between Urban & Provincial and Avanton with an £8 million facility to refinance existing debt secured against a 23,600 sq ft Carpetright store in South Bermondsey, London.
The borrower recently secured permission to convert the existing premises at 651-657 Old Kent Road and build 262 flats.
The site, which benefits from its close proximity to the proposed new Bakerloo Line extension and South Bermondsey Overground station is adjacent to Ruby Triangle, a major regeneration project being developed by Avanton, a London focused property developer, and which has planning in place for 1,152 new homes across five new buildings; a new community sports hall and fitness centre; and open space including a public park.
Urban & Provincial and its co-founder Tom Pratt are longstanding Investec clients, with this facility representing the third time that the two parties have worked together across the bank.
Daniel Carlisle from Investec Structured Property Finance, said: “We are pleased to be able to support two leading London developers with this facility to help ensure the successful delivery of this exciting proposal. It is always great to work with existing clients, particularly in challenging times, and we have built a strong working relationship with Tom over the last few years.
“On this occasion our agile team moved quickly to deliver on tight funding deadlines and despite the unforeseen Covid-19 pandemic, together with our legal risk team, we were able to execute the transaction within a month of terms being issued.”
Luke Osborne, director of Urban & Provincial, added: “We have worked with Daniel and the team at Investec previously but never during such uncertain conditions. The Old Kent Road has substantial appeal and the proposed residential units are truly accessible to the majority of Londoners.
“The units will qualify for the government’s Help to Buy scheme, making the area attractive to first time buyers, owner occupiers and investors. The proposed Bakerloo line extension will further enhance this appeal.”