Lender Investec on Thursday said it still has appetite for London housebuilding despite clouds hanging over the market, as it agreed to fund a new site in Kingston upon Thames.
Investec Structured Property Finance will lend private property developer James Taylor Homes £25 million to redevelop the former Antoinette Hotel into 89 homes.
The 33-month loan, agreed at up to 53% loan to cost, will enable James Taylor to complete its second largest development to date.
Commitment to the deal comes despite concerns pricing and demand in the capital has been hit by Brexit uncertainty and high taxes.
Investec’s Shane Ryan said: “A combination of the chronic undersupply of good quality housing around London and the continued retrenchment of more mainstream lenders is underpinning the robust demand from both domestic and international borrowers for senior development financing.”
Will Scoular at Investec Structured Property Finance, added: “This deal reflects our continued commitment to residential development finance and a desire to further grow our book in the sector.”
