£1.9m loan to convert Thames warehouse into luxury apartments
The client is a private property developer with previous experience of refurbishments in the West End and other prime locations.
The building- a mixed use warehouse - is situated near the Mayflower pub on the Thames from where it is rumoured the Founding Fathers boarded the Mayflower to sail to America.
The client has owned the warehouse since 1995 with small mortgage – £250,000. The building was let to a tenant who had stopped paying the rent. It took the client five years to gain vacant position. Eventually the tenant handed over his Norfolk holiday home in payment for the outstanding rent.
Because the property was a listed building it then took the client two years to get planning permission to convert the warehouse into luxury flats due to all the necessary architects’, listed buildings’ and engineers’ reports that were required. Eventually planning permission was granted for 6 x 2-bed flats and 1 x 3-bed penthouse.
Commenting on the deal, David Whittaker, Managing Director of broker, Mortgages for Business, said: “We took the deal to Aldermore Bank and negotiated a development loan of £1.9m to cover the build costs of £1.3m plus a further £600k of finance to cover other associated costs. Because the development was a major project, the Bank required the client to contract professionals to carry out the work”.
It took six months to find the right contractor but work finally started on the site in August 2014 and completion is expected by February 2015. The gross development value of the site is anticipated to be in excess of £6m.
Update: Refinance of 7-flat development valued at £7m on a single title