United Trust Bank (UTB) and Iron Bridge Finance are jointly supporting the redevelopment of a pair of semi-detached Victorian villas in Swiss Cottage, London.
The development is being undertaken by Northwest3, a joint venture between Prospect Property, OnPlan and Point6 Developments, creating a vertically integrated vehicle that brings together planning, design and construction, enabling the borrower to manage and deliver all critical elements of the project.
The substantial villas had been converted into 19 flats many years ago but having been let for several decades are now tired and dated. The developers plan to remodel the interiors to create 16 new luxury apartments suited to modern day living and discerning buyers. Although the scheme will reduce the number of dwellings from 19 to 16, the improved access and layouts together with a high specification refurbishment will increase the value of the project from £8.5m to a GDV of over £15m.
UTB is providing a senior facility of £9.125m representing 75% of the acquisition and refurbishment costs. Iron Bridge is providing an additional £1m of mezzanine finance and the balance of funds required is being injected by the joint venture partners.
Prices for the finished apartments, which are expected to take 15 months to complete, will range from £600,000 for one-bedroom apartments to over £2m for the large, five-bedroom garden flats.
Tom Wheaton, managing director of Prospect Property, said: “We are excited to be developing unique luxury homes in this prime residential area and returning this majestic building to its former glory. We would like to thank United Trust Bank and Ironbridge for all their help throughout the project, their advice and support has been indispensable. We look forward to working together again in the future.”
Edward Weekes (pictured), manager – property development at United Trust Bank, said: “We are delighted to be supporting this attractive redevelopment and working once again with Iron Bridge to provide Tom and his business partners with the funding they require.
“UTB enjoys working with developers and housebuilders who understand their markets and possess the skills and expertise to deliver successful projects. Tom and the team have a strong and demonstrable track record of transforming historic properties across London and creating unique and desirable homes. I look forward to UTB supporting many more of these unusual redevelopments in the future.”
Edward Alexson, chief operating officer at Iron Bridge Finance, added: “We are delighted to yet again work with our long term partners both in terms of the developer and senior. Together we provide an unrivalled proposition to continue to support strong and professional developers such as Tom to grow.”
