Cordea Savills, the international property investment manager, has acquired a further asset on behalf of its Prime London Residential Development Fund on Hereford Square, South Kensington.
The site is a 1950's residential apartment block built at the end of a classic white painted stucco fronted 1850's terrace following wartime bomb damage and is situated near Old Brompton Road, within walking distance of Gloucester Road tube station. The aim is to restore the terrace and provide three houses totaling ca.12,000 ft² (approx. 1,115 m²).
The Prime London Residential Development Fund team has partnered with Andrew de Candole of de Candole Residential for the development of the site. De Candole is an experienced Prime Central London residential developer with an extensive track record.
Patrick Carr, Fund Director, commented, “The Fund has now successfully completed investments in three high quality developments, demonstrating the team’s proven ability to deploy capital in Prime Central London and structure and execute deals with experienced development partners. This has enabled Cordea Savills to secure additional equity for the Fund, providing investors with diversification across a number of developments, developers and funding strategies”.
Residential development finance remains tight and selective, supporting the Fund’s investment strategy to provide equity to developers unable to source funding through conventional sources. The Fund aims to identify suitable developers and take positions in specific schemes through development equity funding or mezzanine finance. It targets opportunities in Prime London locations where data from Savills research indicates high levels of activity from both domestic and international buyers. Development partners are selected based on their track record in terms of delivery and financial performance, as well as on the merits of the individual development opportunity.
Brian D’Arcy Clark, Head of Residential Acquisitions at Cordea Savills, commented, “This is an ideal project for the fund. Hereford Square is located in the heart of South Kensington and has real potential to be enhanced by our development partner, de Candole Residential. Whilst restoration of the terrace is key, behind the façade will be three houses offering all that is best in contemporary design and finish.”
Andrew de Candole of the development partners commented, “We look forward to being able to create three new houses in the square and restore the terrace to its original design. We are delighted to have Cordea Savills Prime London Residential Fund as a partner. Indeed it was their early agreement to provide funding for the scheme that helped us secure the site in the face of strong competition. We look forward to further joint venture projects in the future.”
Source: Cordea Savills