Magnet Capital has completed and redeemed a £1.01 million development finance facility for the construction of a bespoke home in Chelsea, overcoming a series of planning, legal and logistical challenges on one of London’s most complex urban development sites.
The loan, introduced and structured by specialist finance advisory firm Karis Capital, funded the construction of a two-bedroom property hidden behind the King’s Road in Chelsea.
The scheme, located within the Royal Borough of Kensington and Chelsea’s Sloane/Stanley Conservation Area, involved the creation of a high-specification home extending to just over 1,000 sq ft.
The development presented a range of challenges, including the complete absence of vehicular access, meaning every piece of construction equipment and material had to be transported through a narrow pedestrian passageway using wheelbarrows, trolleys and specialist micro-equipment.
21 PARTY WALL AWARDS
The project also required 21 Party Wall Awards to be negotiated with neighbouring residential and commercial owners, including retail units, studios and a school, while the planning process stretched back more than a decade before permission was finally granted in 2022.
Magnet Capital says that the successful redemption demonstrates the importance of specialist underwriting when assessing complex development opportunities.
Ashley Ilsen (main picture, right alongside fellow Magenet co-chief executive Sam Howard), says: “This was one of the most operationally challenging sites we have ever funded – a genuinely hidden gem behind one of the world’s most famous streets, with constraints that would have been prohibitive without the right team around the table.
“No vehicular access, 21 Party Wall Awards, a planning history going back to 2013 and a basement that cost more than half the entire build budget to construct.
“Our underwriting team worked through every one of those issues methodically and the fact that this loan has redeemed successfully and on time is a testament to the experience of the borrower, the quality of the broker relationship with Karis Capital, and the conviction of our team in backing the right people on the right project.”
Luke Casey, senior associate at Karis Capital adds: “This was exactly the kind of deal that demonstrates the value of working with the right lending partner.
“From the outset, Magnet Capital’s team understood the complexity and never wavered in their commitment to getting it done.
“Their ability to look beyond the obvious challenges and back the right people is what sets them apart. We are proud to have introduced this transaction and delighted to see it complete successfully.”
