Location: Kensington, London
Loan Amount: £4.7 million, GDV: £7.8 million
Finance Category: Development Finance
Fox Davidson were approached by a client based in the United Arab Emirates who contacted our Knightsbridge office.
Our client had purchased a property in Kensington and required finance to develop the property.
The funding requirement would allow them to re-structure the property, changing it back into a single unit property, while it was currently used as two apartments.
One of the main challenges developers in London face when working on high-value single units is that development funders prefer to lend on a property that appeals to the general market rather than high-value units which have a restricted market.
In addition, our borrower was a non-resident and non-domicile in the UK but had purchased the property in an SPV UK limited company.
Funding high-value real estate in London is an area of expertise for some of our privately funded family office funding partners.
We first looked at the developer’s experience both in the UK and abroad and we were able to demonstrate that they had experience in property development.
Importantly, they also had an experienced team of professionals attached to the project who were based in London, including an award-winning building contractor and a reputable firm of architects.
One of the key points when securing London real estate development finance for foreign nationals is looking at how the scheme will be project managed and the professional team.
Where a client is not based in the UK, it’s important to offset that risk by using a team of professionals that are based in the UK, as was the case here.
Fox Davidson are a specialist property development finance broker in London. We secure development finance for London property developers borrowing upwards of £1m with funding lines available to £200 Million.
For more information on development finance in London or elsewhere in the UK, please email firstname.lastname@example.org or call us on 0117 989 7950.