Investec Structured Property Finance announces that it has agreed to provide an ca. €21.5m (£18m) loan to Ballymore Group, the international property developer. The loan will be used inter alia to enhance existing income at two light industrial sites in Silvertown, in the East London Borough of Newham, whilst Ballymore seeks to secure residential-led planning consent at the sites.
The loan facility is Ballymore’s first announced since its full exit from NAMA was finalised in December 2016. It also marks Investec’s first significant investment financing since 2006 as it looks to further diversify its loan book and client debt funding offering in 2017.
The facility has been secured against two-income producing sites located in Silvertown, the industrialised district on the north bank of the Thames, near London City Airport. Totalling 31 acres, the sites are currently occupied by a range of industrial and warehouse buildings with parking and outside storage, in addition to a small collection of terraced houses. Following a number of tenant improvements and lease re-gears across both sites Ballymore anticipate that ERVs will increase significantly, yielding strong income while planning schemes are worked-up.
Mark Bladon at Investec commented: “The Silvertown area offers some of the most exciting regeneration potential in London and the opportunity to work with a global real estate investor like Ballymore is a welcome one. We like both the longer-term residential schemes being proposed at the sites, in addition to the asset management initiatives currently underway at the sites. We are confident that this will be the first of a number of similar deals moving forward. During 2017 we will be looking to originate more investment financing, alongside growing the development loan book. By capitalising on the team’s expertise, as well as our strong client relationships, we can provide bespoke funding solutions, diversify our exposure within the end-to-end property spectrum, whilst continuing to focus on sourcing and lending on opportunities that offer attractive return potential.”