Boutique commercial finance consultancy, Mantra Capital, has arranged a £3.25m loan facility for a against a newly completed 48-unit office-to-residential development in Peterborough.
The residential investment loan was against properties comprising one and two-bed flats that will be let out by Mantra’s client, primarily to young professionals. It was for a client through Arbuthnot Commercial, the Commercial arm of Arbuthnot Latham & Co.
Nimesh Sanghrajka, managing director, Mantra Capital, said: “Arbuthnot Commercial is a fantastic lender to work with, as their underwriting is flexible and they always make the effort to genuinely understand a borrower’s circumstances and goals.
“This was a long-term client of ours with an excellent track record who is tapping into the exciting growth potential of towns and cities such as Peterborough that are within an hour of London. PDRs are contributing to the rebirth of the regions.”
Peterborough is seeing a sharp increase in development activity, especially office-to-residential projects that are facilitated by Permitted Development Rights.
Mantra Capital’s founders attribute the growth in the regional development and rental market to the sharp rise in ‘challenger’ developers, the commercial agility of challenger and private banks, and the increased value found outside the capital.
Stephen Fletcher, managing director, Arbuthnot Commercial, added: “Our team has worked with Mantra on a number of occasions in the past and, with their banking background, they instinctively understand how we operate.
“With more and more developer and landlord activity shifting out of London, Peterborough, which is a comfortable commute away from the capital, is proving an increasingly buoyant market and one that we are very comfortable with given its long-term outlook.”