Triple Point has provided a £17m development facility for a 31-home mixed-use scheme in Fulham, in a deal introduced by LEXI Finance.
The funding, provided to Sotheron Developments, will support construction of two residential blocks and two commercial units on a constrained site off the King’s Road.
One block will contain 21 apartments for private sale, while the second will provide 10 affordable homes that have been pre-sold to Westway/Karibu Housing Association. The development also involves construction of a double-storey basement.
The facility represents the largest single loan originated to date by Triple Point’s Property Development team. The lender recently increased its maximum facility size to £20m.
RECYCLED FUNDS FORM PART OF STRUCTURE
The £17m facility has been structured at 64% loan-to-GDV and includes a mechanism under which proceeds from the pre-sold affordable homes will be recycled into construction of the private residential block.
Triple Point says the approach reduces its exposure and lowers the developer’s overall financing cost while retaining the required level of funding at the start of the project. The structure was developed with LEXI Finance.
Philip Bird, head of origination, property development, private credit at Triple Point, says: “London continues to need housing delivered at pace, particularly on constrained brownfield sites where schemes like this often fall outside the appetite of mainstream lenders.
“Sotheron Place is a landmark transaction for our Property Development team, both in scale and structure.
“Adam Wass led the transaction on behalf of Triple Point, working closely with LEXI Finance and the borrower, to structure the package around the project’s requirements, which enabled us to bring this complex deal to completion.
“It demonstrates the type of tailored, well-structured lending we can originate as we scale.”
Sam Le Pard, director at LEXI Finance, says: “I’m proud to have worked on this transaction over a sustained period, supporting a long-term client on a unique deal.
“Complex transactions can sometimes become strained as they progress towards completion, however, this deal was the opposite from the off, with all parties pulling in the same direction towards completion.
“The best example of this was collectively agreeing a recycled funding solution, which meant a lower risk profile for the lender and reduced costs for the borrower, without any less funding on day one.
“I can’t wait to visit the site as the transaction progresses, although I think I’ll try and time my first visit for when it’s not just a double-storey hole in the ground.”
A spokesman for Sotheron Developments says: “Working with a financing partner who is genuinely flexible made all the difference on a site as complex as this one.
“Triple Point took the time to understand what we needed and structured the facility around it, rather than asking us to fit a standard template.
“We’re pleased to be moving forward with a scheme that delivers much-needed homes in Fulham, and we look forward to working with Triple Point again.”
Triple Point was advised by RWK Goodman, with Lambert Smith Hampton acting as valuer and Dalbergia serving as independent monitoring surveyor.
