East London property developer Gold Section has bagged £30m from short-term high-value lender Fortwell Capital, to fund its latest mixed-use project in a well-to-do bit of Hackney.
39-45 Gransden Avenue, next to London Fields, will deliver 42 “upscale” residential units across 32,540 square feet (12 one-bed, 16 two-bed and 14 three-bed), along with 20 commercial-use studios (21,969 square feet). Planning has already been approved to demolish an existing vacant warehouse, and replace it with two 4/5 storey buildings, a three-storey mews block, and a single-storey commercial block, all designed by Guy Holloway Architects.
Gold Section’s previous developments include a £14.4m seven-unit mixed use at 20 Hoxton Square, and a £13.8m scheme at 1 Curtain Place in EC2, which delivered nine apartments alongside commercial space last year.
Knightsbridge-based property finance specialists Brotherton Real Estate made the introductions, resulting Gold Section getting a gross advance of £29.5m over a 24-month period on a loan-to-costs basis of 81%. The loan-to-gross development value has not been revealed, but Fortwell says the figure is “at the higher end of its lending parameters”.
Estate agency Fyfe Mcdade, who acquired the off-market site on behalf of Gold Section, has been appointed as the sole selling agent for the apartments and studios. The development – completion of which is scheduled for February 2018 – will be marketed from the agency’s East London office in Shoreditch.
This deal wrapped up a pretty big week for Fortwell Capital, with CEO Colin Sanders reporting that the firm completed five major transactions for a combined value of £51m in just five days.
Colin Sanders, Fortwell Capital’s CEO: “As might be expected in the current environment, this transaction was not without its difficulties. We stepped in at a time of pre- and post-referendum jitters amongst some funders, but we liked what we saw.
“Gold Section Developments have an impressive track record of success and possess an unrivalled local knowledge of the areas in which they develop. Together with the signature expertise provided by Brotherton, we had little difficulty getting comfortable with the structure of the deal.
“Many lenders continue to say the right thing during these uncertain times, but it’s action – not words – that matter. With permanent capital in the market, and an expanding team of best-in-class experts at our disposal, Fortwell Capital will continue to support property professionals in London, throughout the South East and in select areas of high demand.”
Richard Fine, principal at Brotherton Real Estate: “This is a really exciting development in an ever improving fringe location by a seasoned developer. Nonetheless, Brexit did have an impact and while some lenders in the market were pulling back, the team at Fortwell gave Gold Section and Brotherton all the confidence we needed that they would deliver on time. It was a pleasure working with all parties involved and we look forward to what will be a landmark development in London Fields.”