United Trust Bank (UTB) and Iron Bridge Finance (IBF) are funding a £52m scheme to redevelop a brownfield commercial site on Warburton Road, near to London Fields in Hackney.
The project will see Regal London “re-envision” the commercial buildings currently occupying the site to create 58 new apartments and 18,000 square feet of new office space.
UTB and IBF were impressed with the developer’s track record of delivering similar schemes and agreed to provide the £34.2m senior facility and £6m junior debt facility respectively to complete the acquisition of the site and fund the construction and associated costs.
10% of the commercial element will be allocated as Affordable Workspace. This Affordable Workspace, which is to be let to one of Hackney’s agreed providers, will offer commercial space at 80% of the open market level.
Marc Eden, investment director at Regal London, said: “We’re delighted to be working with both funders on this exciting development and look forward to a successful relationship with them. Adam Bovingdon and Mark Pannell of UTB together with Edward Alexson and Lance Joseph of IBF, swiftly gained a thorough understanding of our business plan, the scheme and financing required. We enjoy working with experienced finance partners who have a strong understanding of real estate development.
“Hackney is a borough we know well, having played an active role in transforming the local area through innovative mixed-use schemes across seven projects in the area.”
Mark Pannell, senior manager – property development, United Trust Bank, added: “Regal London have established an enviable reputation for creating high quality, sought after homes in the Capital and I’m delighted that UTB is supporting this exciting redevelopment. Regal’s team are adept at identifying opportunities where their vision and skills can take urban brownfield sites and create attractive and sought after new homes and commercial spaces. The high quality of their design, construction and finished product is evidenced by their impressive back catalogue of successful developments.
“I’m looking forward to seeing this project progress and hope that this will be the first of many Regal London schemes supported by United Trust Bank.”
Edward Alexson, chief operating officer at Iron Bridge Finance. concluded: “We are delighted to be able to support Regal London on this exciting development which is another welcome addition to the fashionable and popular area of Hackney. The quality of design and track record of Regal London speaks for itself and and it was a pleasure to be involved in this transaction. The professionalism and the strong relationships between all parties was first class and we look forward to further projects together.”