Global alternative investment manager Cheyne Capital has provided a £92.3m (€105,5m) loan to a fund build-to-sell apartment project in the UK.
Cheyne said it has provided the senior loan to a joint venture between Avanton and Lloyds Banking Group-backed Housing Growth Partnership (HGP), which will use the loan to refinance its existing facility.
The loan is set to finance the construction of The BeCa, a 292-apartment development in Bermondsey, South-East London.
The project is expected to be completed in 2027.
The scheme forms part of Avanton’s ongoing regeneration of the Ruby Triangle on Old Kent Road, which will deliver more than 1,600 new homes across five buildings, alongside commercial space, creating a new, mixed-use quarter in South-East London.
Nick Grosse, director in Cheyne Capital’s Real Estate, said: “Against ongoing housing supply constraints, we continue to see demand for high-quality, well-located residential schemes across London, particularly in areas benefiting from redevelopment and improving connectivity.
“Testament to this is the fact that nearly 40% of the homes in THE BeCa were already pre-sold at closing. We are pleased to be working alongside experienced partners on a project that will help deliver these much-needed new homes, as well as contribute to the regeneration of Old Kent Road and the wider area.”
Omer Weinberger, CEO of Avanton, said: “THE BeCa is the first phase of Avanton’s c.2,500 new homes pipeline and marks the start of our long-term vision for the regeneration of Old Kent Road.
“The refinance with Cheyne Capital, and our continued partnership with HGP, reflects the strength of this standout scheme and the confidence in delivering on time and on budget.”
Tasos Ikonomou, investment director London & SE at HGP, said: “Our partnership with Avanton and Cheyne Capital will continue supporting the delivery of THE BeCa, the first phase of the 1,600-unit Ruby Triangle masterplan, which plays an important role in the regeneration of the Old Kent Road.
“This investment aligns with our mission to back experienced developers, whilst working with high calibre funding and construction partners, to accelerate the delivery of homes across the UK.”
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