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LEXI Finance arranges £11m debt facility

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Real estate capital advisory LEXI Finance has arranged a £11m debt facility to support the development of 29 new-build apartments in Wandsworth.

 

The loan is made up of a senior development facility, provided by United Trust Bank (UTB) and mezzanine finance from a private family office, which will enable the developer to boost their return on investment and deploy an efficient use of their capital across projects.

It will enable the developer to demolish the existing disused commercial building and deliver 29 new-build apartments in a residential block that also contains a roof terrace and communal space.

The development will contain 24 private and five affordable units, and will help Wandsworth Council on the way to achieving its target of delivering 2,800 new affordable homes in the borough between 2019 and 2023.

Sam Le Pard, co-founder at LEXI Finance, said: “This is an exciting time for debt markets.

“We’re witnessing elevated levels of competition across the UK property market, but especially within the mezzanine market, which is allowing us to structure blended loans tailored to our clients’ needs.

“Mezzanine finance is a crucial tool in a developer’s financial armoury, that enables them to take on more sites and deliver more homes.

“Phil Kirkwood and the UTB team were quick to understand our client’s requirements and help us to deliver funding that allowed the maximum return on investment, enabling the client to take on more sites and deliver more homes for local people.”

Philip Kirkwood, director of property development at United Trust Bank, added: “It’s always a pleasure to welcome a new customer to the bank and we hope this will be the first of many exciting new developments for a borrower with an established track record of delivering excellent quality homes.

“It was great to work with Sam and the team at LEXI Finance whose professionalism showed once again the value they can add especially when structuring mezzanine and more complex funding solutions.”

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