Investec Structured Property Finance has backed Monarch Square Holdings with a loan to buy a London buy-to-rent scheme.

Investec said it has provided £12.3m (€13.8m) financing to help the consortium fund the acquisition of 20 units in Clapham Junction from Peabody.

Monarch Square is made up of a group of predominantly South African investors looking to invest and externalise funds into the UK property market, alongside London-based Shandon Property Group.

The scheme, which was completed in 2016, is part of the first phase of a residential development on Peabody’s St John’s Hill estate.

Monarch Square purchased just under 30% of the block, consisting of one, two, three and four-bed homes, which are fully let.

Matthew Robinson, at Investec Structured Property Finance, said: “Despite the challenging economic backdrop caused by the COVID-19 pandemic, we are continuing to support established domestic and international clients who recognise the strong fundamentals of the UK real estate market and are looking to take advantage of attractive opportunities across a range of asset classes.

“This was an opportunity to fund a bulk residential purchase in a prime London residential neighbourhood.”

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