UTB’s £34.2m senior facility — agreed at 65% LTGDV on a 33-month term — and Iron Bridge’s £6m junior debt loan will help the developer complete the acquisition of the brownfield commercial site on Warburton Road and fund the construction and associated costs of the project.
Regal London is set to redevelop the current commercial buildings into 58 apartments, configured around a central internal courtyard and 18,000 sq ft of new office space.
Some 10% of the commercial element will be allocated as affordable workspace, which will be let to one of Hackney’s agreed providers at 80% of the open market level.
Mark Pannell, senior manager for property development at UTB, said: “Regal London have established an enviable reputation for creating high quality, sought-after homes in the capital and I’m delighted that UTB is supporting this exciting redevelopment.
“Regal’s team is adept at identifying opportunities where its vision and skills can take urban brownfield sites and create attractive new homes and commercial spaces.
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“The high quality of its design, construction and finished product is evidenced by its impressive back catalogue of successful developments.
“I’m looking forward to seeing this project progress and hope that this will be the first of many Regal London schemes supported by UTB.”
Marc Eden, investment director at Regal London, commented: “We’re delighted to be working with both funders on this exciting development and look forward to a successful relationship with them.
“Adam Bovingdon [head of property development at UTB] and Mark, together with Iron Bridge COO Edward Alexson and group chairman Lance Joseph, swiftly gained a thorough understanding of our business plan, the scheme and financing required.
“We enjoy working with experienced finance partners who have a strong understanding of real estate development.
“Hackney is a borough we know well, having played an active role in transforming the local area through innovative mixed-use schemes across seven projects in the area.”
Edward added: “The quality of design and track record of Regal London speaks for itself, and it was a pleasure to be involved in this transaction.
“The professionalism and the strong relationships between all parties were first class and we look forward to further projects together.”