- We provided a £7.24 million loan for a redevelopment project in Elephant and Castle, creating 23 new apartments.
- The loan covered 65% of the £11.15m Gross Development Value (GDV) for the site acquisition and redevelopment.
- The project involved several complexities, which we worked closely with the advisor and borrower to overcome.
We’ve just wrapped up a £7.24 million development finance deal to help redevelop a key site in Elephant and Castle, Central London. This funding enabled the construction of a two-storey vertical extension, renovation of existing units, and enhancements to the building’s façade. Once completed, the project will offer 23 new apartments.
We provided the £7.24m loan against an £11.15m Gross Development Value (GDV), representing 65% Loan-to-GDV (LtGDV). The borrower, an experienced developer, used the funding to acquire and redevelop the site.
The transaction involved several complexities, including:
- Securing vacant possession: the borrower required vacant possession, which involved bailiff intervention, with a strict seven-day timeline for completing the acquisition once vacant possession was achieved.
- Vertical extension requirements: additional structural considerations were necessary, including managing over-sailing licences, party wall awards, and agreements for ‘Right of Light’ easements.
- Share purchase structure: the acquisition was structured as a share purchase of the existing corporate owner.
We worked closely with both the advisor and borrower to navigate these challenges, ensuring the funding was delivered on time.
Neil Leitch, Managing Director of Development Finance at Hampshire Trust Bank, said:
This deal brought together several challenging elements—vacant possession, structural hurdles with a vertical extension, and a share purchase. By working closely with the advisor and borrower, we tackled each issue head-on and ensured the funding was delivered on time. It’s a prime example of HTB’s commitment to finding practical solutions and making even the most complex projects happen.
James Mole, Director at J3 Advisory, added:
This was a unique and complicated case, and it took terrific teamwork and coordination to get it over the line. Some lenders might have struggled with the complexities involved, but I was confident that HTB would tailor a solution for the client—and they more than delivered. I look forward to working with them again to support my developer clients in the future.
The project reflects our commitment to supporting brokers, advisors and developers in delivering complex redevelopment projects.
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