Hampshire Trust Bank has provided a £2.4m development finance facility for a mixed-use scheme in Mitcham, south west London.

The deal, introduced by P10 Financial Group, will fund the delivery of eight residential units and two commercial units on a high street site.

The scheme is positioned as part of wider local regeneration, targeting first-time buyers, young professionals and investors, alongside new commercial space.

The project reflects continued demand for well-located housing in established urban areas, particularly where supported by ongoing regeneration activity.

STRUCTURED APPROACH

The facility required a structured approach to manage a planning gain delay and early-stage challenges around contractor engagement.

Hampshire Trust Bank worked with the broker and borrower to adapt the funding structure as the scheme evolved, ensuring the development remained on track despite delays.

The deal marks a new relationship between the lender and borrower, while building on an existing partnership with P10 Financial Group.

The transaction was led by Sarah Dix, Lending Director at Hampshire Trust Bank, with support from Athens Piponides, Scott Apps and Gemma Pyhpers.

FLEXIBLE APPROACH

Sarah Dix (main picture), lending director at Hampshire Trust Bank, said: “This was a transaction that required a flexible approach to both structure and delivery. The project evolved as it progressed, and it was important that the funding reflected those changes while maintaining certainty for the borrower.

“By working closely with the broker and client, we were able to support the development through those challenges and keep it moving forward.”

Jack Grey, Associate Relationship Manager at P10 Financial Group, added: “This is a longstanding client relationship, and the project required a lender that understood both the scheme and the client’s objectives from the outset.

“While the development presented challenges, a collaborative approach between lender, adviser and borrower ensured these were worked through and the facility remained aligned to the needs of the scheme. It will be positive to see the site transformed into well-designed apartments and modern commercial space for the Mitcham community.”

ADAPTIVE STRUCTURE

Neil Leitch, Managing Director of Development Finance at Hampshire Trust Bank, said: “Smaller-scale developments like this are a key part of how new homes are delivered in established urban areas, but they rarely follow a straight path from planning through to delivery.

“Delays, changing requirements and practical challenges on site are part of the reality for SME developers.

“In that environment, having a funding structure that can adapt as a project evolves is critical. Specialist lenders play an important role in supporting these schemes, providing the flexibility and continuity needed to keep developments moving and bring forward regeneration at a local level.”