Inspired Asset Management has secured development finance for two home county resi schemes worth a combined £27m.
The first secures £15.1m for a 61-apartment scheme in Chertsey through a £12.9m senior loan from Amicus, arranged by Arc & Co., and £2.2m in preferred equity from Grasslake UK Investments Limited.
Bridge House, an early 2000s office building, will be refurbished and extended to provide 39 one and two-bedroom micro-apartments and 22 standard-sized one and two-bedroom apartments close to Chertsey Bridge and the River Thames. Prices start at £265,000 and the scheme has an estimated GDV of £20.4m. Chertsey is an employment hub with Samsung, Sony, Toshiba, Procter & Gamble and McLaren all nearby.
The second funding secures £5.2m for a 25-unit build to rent scheme in Farnborough comprising a £3.9m senior loan from Octopus, also arranged by Arc & Co., and £1.3m in mezzanine finance from a private funder, arranged by Savills.
25 two and three-bedroom maisonettes off Westmead in Farnborough town centre will be refurbished and reconfigured to create high-spec flat shares for rent on a room by room basis. The scheme has an estimated GDV of £6.2m and is predicted to offer a gross rental yield on cost of 12.4%. The development is situated just 0.4 miles from the railway station for a fast 34-minute train to London Waterloo.
Jeremy Beck, Development Director at Inspired Asset Management, said: “Now that we have funding in place we hope to start construction imminently. These are two contrasting projects with one being for sale and the other for rent, but both will provide high quality, efficiently designed homes in emerging commuter towns where there are excellent prospects for income and capital growth. Chertsey is an employment hub in its own right while Farnborough offers affordable living just 34 minutes from central London, appealing to young professional buyers and renters.”
Keith Aldridge, Managing Director at Amicus Property Finance, said: “We are delighted to have been able to support this project – a relatively complex deal, driven to success by an experienced and proactive developer and broker, plus valuers Kempton Carr Croft and FieldFisher who managed the legalities. Overall, this is a great example of where effective stakeholder collaboration worked in partnership with our experienced underwriting team to deliver a great result.”
Emma Burke, Head of Development Origination at Octopus, said: “Having received the introduction from Arc & Co., one of our key partners, we were delighted to work together to fund Inspired’s latest development scheme with our new 65% LTGDV low cost senior stretch development product. This is an extremely well-located residential scheme and forms part of an exciting development portfolio.
“Inspired has a strong team with a significant track record of delivering high quality residential developments and we look forward to working on further complex development schemes in the near future.”
To enquire about our Chertsey development, please contact the sales team on 020 8688 6552.