New principal lender GRE Finance “GRE” has provided a £5 million facility, at 70% LTV on an 18-month term, to property investment and development firm London Green.
The lender, launched in the spring with the backing of specialist property funder ASK Partners, has already completed £11 million worth of loans during the first month of trading. London Green’s new development in West London’s Borough of Hammersmith and Fulham is the latest to be added to GRE’s portfolio of clients.
The loan will be used to fund an acquisition of a 0.8-acre development site located in Europe’s largest regeneration project area managed by the Old Oak and Park Royal Development Corporation (OPDC).
Daniel Benton, director and co-founder of GRE Finance, adds: “Development of the OPDC area is estimated to provide a £15 billion economic boost for London over the next 30 years. Scrubs Lane has been identified as a key area for the early delivery of new homes making this site a fantastic development opportunity. We were delighted to help fund this acquisition for London Green whom I believe will create and deliver a scheme that will transform this site into a thriving waterside community.”
Currently, the development site includes a 1,743 square foot warehouse and a multi-let open storage facility. The site will also benefit from a division within OPDC’s plan for over 100 new properties in addition to 420 square metres of commercial space.
London Green plans to gain permission for a new scheme that aims to contribute to the OPDC’s 25,500 new homes target. The property development and investment company also hope to contribute alongside HS2 and Crossrail which have already started to transform the local area into a well-connected transport interchange that includes new properties, commercial developments, leisure, and amenity space for locals to enjoy.
With roughly 300,000 new homes needing to be built every year in the UK alone, large-scale new developments such as London Green are being seen as great way to help meet new homes targets.
James Tregoning, managing director at London Green, further explains: “This purchase is central to our core strategy of securing underutilised brownfield development sites and demonstrates our ability to swiftly acquire unconsented and complex sites. GRE had a strong understanding of our goals and the development cycle and we are delighted to have completed on our first purchase with them, supported by our debt advisors, Mantra Capital. We are excited to start working with all major stakeholders to bring a vibrant new community to this exceptional waterside location.”
A couple of years ago, PIT visited Old Oak Common to see whether the troubled regeneration project would ever get fully underway, following delays with both Crossrail and HS2, and other major issues. Since that point, HS2 has been confirmed and more building work has started to take place, but question marks remain long-term over how attractive the area will be to new buyers, investors and tenants.