Leading specialist prime property finance company, CapitalRise, has provided finance to fund a £7.9m loan for the development of a luxury residential property in Wilton Place, Belgravia, London.
This is the second loan CapitalRise has provided prime property specialist developer Old House Group in connection with this development – the first being a £6.4m senior debt bridge loan enabling the developer to acquire the freehold of this outstanding Grade II listed property and take the time required to gain additional planning approval.
The second loan is a senior development loan which will enable Old House Group to convert the existing lower ground and ground-floor dental surgery to residential use, and to entirely renovate and refurbish the lower ground / basement and upper-floors into a single residential property, which will include five bedrooms, a cinema room, and a study.
Property in Belgravia is in high demand and there is strong activity in the property market post-pandemic. Research from Savills reveals that the first quarter of 2022 saw 128 sales of residential properties over £5 million, totalling £1.14 billion – the strongest start to the Super Prime market since 2013. Almost half of London prime sales were across just four locations and 10.1 per cent of those were in Belgravia, evidence that buyers are returning to traditional prime markets.
House price growth has also been strong, with flats and houses having now recovered from pandemic falls. Savills is forecasting an 8 per cent growth in house prices for prime Central London in 2022 and a 23.9 percent growth over the next five years.
CapitalRise has had a very busy first half of the year with a record number of loans in their credit approved pipeline. They continue to structure innovative, bespoke financing to meet demand from prime property developers looking for value added funding solutions for developments in Prime London and the Prime Home Counties.
Simon Brown, Head of Lending, CapitalRise, said: “This property in Belgravia is another example of our appetite to help developers who are looking for finance for prime property assets up to £20m, and our appetite and ability to provide bridge loans prior to development work commencing.
“Being a lender founded by property developers, we understand borrowers’ finance requirements at every stage from site acquisition through to project completion.
“We created an innovative and bespoke finance solution that met the borrower’s particular needs, and were able to supply funding quickly to acquire the site, providing additional leverage via additional first charge security over property owned within the borrower’s group. We were also able to provide the breathing space the borrower needed to make all of the necessary preparations before commencing work on site.”