UK privately held firm Topland has completed a quartet of bridging loan lending deals in December with a draw down of over £50 mln (€66 mln).
UK privately held firm Topland has completed a quartet of bridging loan lending deals in December with a draw down of over £50 mln (€66 mln).
The bridging loans were for an average loan period of nine months and had an average loan-to-value of 65%. Three of the funding deals entailed planning risk.
The deals, which have a gross development value of £250 mln, include the former police station in Chelsea off Sloane Avenue, where the borrower is seeking consent to redevelop to luxury residential.
The 23,153 sq ft (2,150 m2) building sits on a 0.195 acre site. It is understood a private client of Topland paid over £45 mln and is working up plans for a residential scheme which local agents have estimated could have a gross development value in excess of £150 mln.
Topland provided the loan of £22.5 mln, at a rate of 5.5% per annum.
'We are seeing an increasing number of clients coming to us with deals which have a focus on public sector buildings,' said Topland structured finance manager, Edward Matthews.
'Given the cost cutting agenda being pushed from national and local Government this is only likely to continue. We are well positioned to capitalise this trend as these transactions often have a strong element of planning risk. This is something most other lenders are uncomfortable with. Often when these assets come to market quick decisions are needed and few lenders will move as quickly as Topland.'
