Builder constructs residential development in London

Short-term lender funds £50m in one week




Fortwell Capital has revealed it has provided over £50m of funding in a single week as it financed five separate transactions.

The largest was £30m for a new development scheme in the London borough of Hackney. 

Three of the transactions – for £5.6m, £4.4m and £4.2m –were used for specialist commercial development projects outside the M25.

The fifth loan was for a gross value of £7m and was used as a refinance bridge provided against a high-end residential development in Battersea at a loan-to-value of 75%.

The £30m loan was Fortwell Capital’s largest transaction this year and was used for a mixed-use residential and commercial scheme.

The deal came about after property finance advisers Brotherton Real Estate introduced the project to Fortwell Capital.

The development in London Fields had permission for 42 upscale residential units and was to be developed by Gold Section Developments.

The residential development would consist of 12 one-bed, 16 two-bed and 14 three-bed apartments along with 20 commercial studios. 

Planning consent has been obtained for the demolition of the existing vacant warehouse as well as the construction of two four-/five-storey buildings.


The new look development in Hackney

Fortwell Capital has provided Gold Section with a gross advance of £29.5m over a period of 24 months on a loan-to-cost basis of 81%.

Colin Sanders, CEO of Fortwell Capital, said the transaction was not without its difficulties – unsurprising in the current environment.

“We stepped in at a time of pre- and post-referendum jitters among some funders, but we liked what we saw.

"Gold Section Developments has an impressive track record of success and possess an unrivalled local knowledge of the areas in which it develops. 

“Together with the signature expertise provided by Brotherton, we had little difficulty getting comfortable with the structure of the deal."

Richard Fine, principal at Brotherton Real Estate, added that this was an exciting development in an ever-improving area.

“Nonetheless, Brexit did have an impact and while some lenders in the market were pulling back, the team at Fortwell gave Gold Section and Brotherton all the confidence we needed that they would deliver on time. 

“It was a pleasure working with all parties involved and we look forward to what will be a landmark development in London Fields."

The development is expected to be completed by February 2018 and will be marketed by estate agency Fyfe Mcdade. 


The proposed residential tower

Colin concluded that even though many lenders continue to say the right things during uncertain times, it was action not words that mattered.

“With permanent capital in the market, a sharpened appetite to lend, and an expanding team of best-in-class experts at our disposal, Fortwell Capital will continue to support property professionals in London, throughout the South East and in select areas of high demand."

1 Comments

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    Robert Masih

    Hello Looking for funding options on development projects we are working on would like more details on your options. Thanks Rob

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