Development Lenders News:-Brent Cross, Silvertown and Barking Riverside development shave bagged £309m in Homes England infrastructure loans towards building 20,000 new houses.

The funding comes from the government´s £4.5bn Home Building Fund and is aimed at accelerating the delivery of new homes for the capital.

Housing minister Christopher Pincher said: “Our commitment to get Britain building is central to the mission of this government.

“This investment is a real statement of intent, delivering up to 20,000 homes, thousands of jobs, and putting in place the schools, retail and leisure spaces needed to form strong, vibrant communities.”

Product Max LTV Up to 50% LTV 50.01 – 65.00% LTV 65.01 – 75.00% LTV Term & Repayment Arrangement Fee
Residential

Including Light Refurbishment
Up to 75%

Lower of PP or MV

0.43% pm 0.53% pm 0.60% pm Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added.  

1% -1.5%
Full fee added to

the loan.

Semi Commercial

Including Light Refurbishment
Up to 75%

Lower of PP or MV

0.6% pm 0.6% pm 0.6% pm
Commercial

Including Light Refurbishment
Up to 70%

Lower of PP or MV

0.75% pm
Residential

Heavy Refurbishment
Up to 75%

Lower of PP or MV

0.60% pm 0.65% pm 0.7% pm
Commercial and Semi Commercial

Heavy Refurbishment
Up to 70%

Lower of PP or MV

0.83% pm 0.83% pm 0.7% pm

A £148m loan will enable BXS LP, a partnership between Barnet Council and developer Argent Related, to fund the land and infrastructure works for 6,700 homes on a 180-acre brownfield site from the North Circular to Cricklewood Lane. The homes will be built four years faster than they would have been without the funding.

The scheme will also deliver grade A office space and retail as well as leisure facilities, new schools, community facilities and new and improved parks, generating 25,000 new jobs.

Joint chief executive of BXSLP André Gibbs said: “This loan will assist in funding the infrastructure required to deliver 6,700 new homes as well as 3 million square feet of state-of-the-art offices, support retail and public amenities. At this challenging time, it is a great boost to the project that will allow us to maintain momentum and to secure the earliest possible delivery of vital homes.”

East London gets a housing boost

In East London the Silvertown Partnership, an affiliate of Starwood Capital Group and Lendlease, will use a £105m debt facility for 3,000 new homes to be built at Silvertown Quays. The major 62-acre brownfield development in the Royal Docks, Newham, also has planning approval for office, retail and leisure space.

Millennium Mills, a former mill and local landmark, will be brought back to life and a new pedestrian and cycle bridge across Royal Victoria Dock will link the site to Custom House Crossrail station. Homes England’s investment will also support the restoration of Millennium Mills and the dock walls, which had previously been a barrier to development of the scheme.

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In suburban East London, a funding package worth £56m in infrastructure has been agreed for Barking Riverside. Challenging areas of the 179-acre development of over 10,000 new homes will be unlocked enabling an extra 1,000 to 2,000 homes to be built. The funds will also speed up the delivery of roads and social infrastructure.

The plans also include 65,000 square metres of commercial and leisure space, as well as healthcare facilities, seven new schools, large public open spaces and a new London Overground station.

Development Lenders – Hank Zarihs Associates

Brokers Hank Zarihs Associates said property development lenders were keen to offer funding packages for similar schemes in prime London locations.

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