Ben Barbanel

OakNorth partners with Cogress to fund mixed-use scheme in Hackney

OakNorth has teamed up with Cogress to provide £13m of funding to a property developer for a 20-unit, mixed-use scheme in Hackney.

The challenger bank has lent £9.6m to Carlton James, with the private equity company providing a further £3.6m of equity towards the development.

The scheme comprises 13 flats spread over five floors, ranging from one-, two- and three-bedroom properties with private balcony space, and includes four duplex penthouses, with two having private rooftop terraces.

The development – which has a targeted exit date of December 2019 – is expected to sell for £16.6m.

The 21,442 sq ft site – located at 35 Shore Road, Hackney – also comprises seven commercial units.

Cogress will work with London-based real estate investment firm Gold Section Developments on the scheme.

Hackney has become one of the capital’s most in-demand boroughs, with average houses prices rising by 700% over the past two decades.

Carlton James was introduced to OakNorth by Brotherton Real Estate.

Ben Barbanel, head of debt finance and Surinder Sidhu, debt finance director, both at OakNorth, said: “Hackney has experienced rapid economic growth over the past 15 years, with the number of businesses having increased by 40%, representing 17% higher growth than the London average.

“Particularly in the last 12-18 months, the wider Hackney borough has transformed into one of the most popular in London.

“Given the under supply and over demand in the ‘core’ city fringe, the likes of Aldgate, Whitechapel and Hackney have seen an increase of tenants and business owners migrating further east seeking a more affordable offering.”

Tal Orly, founder and CEO at Cogress UK, added: “We are thrilled to expand our east London property portfolio and bring to our network of qualified investors the best possible investment opportunities in one of the capital’s most in-demand boroughs.

“Brexit, inflation levels and high stamp-duty rates for second-time buyers are some of the issues slowing the market.

“However, there are pockets in London that still show strong growth and Hackney with its vibrant community is definitely one of them, still remaining a very attractive investment opportunity.”

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