en.Wedoany.com Reported - CapitalRise has provided a £5.5 million senior development loan to acquire and redevelop a townhouse on Chapel Street in London's Belgravia, transforming an uninhabitable property into a five-bedroom family home.
The townhouse, approximately 3,500 square feet across six floors, has been vacant and unmaintained for years. The approved redevelopment plan includes a basement extension and replacing the existing conservatory with a single-storey extension, resulting in a seven-storey property upon completion.
Structured finance advisory firm Saxbury introduced the transaction, which involved a simultaneous equity purchase agreement and a tight execution timeline, requiring multi-party coordination to meet completion deadlines. The property's planned configuration includes full-house air conditioning, a gym and cinema area, a video intercom system, and interior finishes tailored to the residential market.
Raf Chowdhury, Director of Lending at CapitalRise, stated that this was a relatively complex transaction, demonstrating the company's ability to navigate challenges and ensure execution certainty for borrowers. The deal required managing evolving circumstances, synchronizing equity purchases, and meeting tight completion deadlines while structuring an arrangement acceptable to all parties involved.
The Chapel Street project is one of several complex development financing transactions completed in London's core central area this year, as lenders continue to support redevelopment projects requiring technical structures and strict timelines. The transaction occurred as the supply of newly built homes for sale fell to its lowest level since 2017, indicating ongoing pressure on the capital's housing supply.
Kristian Hoy, Head of Structured Finance at Saxbury, noted that the transaction reflects CapitalRise's approach to handling complex deals, demonstrating a highly collaborative and solution-focused approach throughout the process, working closely with all parties to address evolving circumstances and maintain momentum toward completion.
Despite broader challenges in the real estate sector, the development finance market has shown resilience, with mortgage industry figures calling for policy reforms to address accessibility issues affecting millions of potential homebuyers. The redevelopment of the Belgravia townhouse is expected to be completed in the coming months, adding housing stock to one of London's most established residential areas.
