Assetz Capital has funded a loan of £2.83 million for a new residential development in Purley, south London.

The loan has been granted to a first-time developer, who is working with a highly experienced contractor to build six self-contained flats and three three-bed terraced dwellings on a leafy residential street in Purley.

The development is a 12-month build, with a six-month sale period.

The loan has a month term of 18 months and a Loan-To-Gross-Development-Value (LTGDV) of 67%. The borrower will use the funds to cover the costs of the construction and sale of the development.

Andrew Fraser, chief commercial officer of Assetz Capital, said: “We are pleased to be supporting this exciting new residential development in Purley. Despite the current economic climate, we remain committed to providing much-needed funding for property developers across the UK, particularly in areas such as Purley where demand for high-quality housing continues to be strong.”

Scott Pamflett, relationship director at Assetz Capital, added: “It’s an absolute pleasure to be able to support our clients with this opportunity and a great example of how Assetz Capital are able to help property developers across London and the South East.”