West One Development Finance supports Empire Global Finance with £11m Loan

Posted by West One on 3rd September 2024 -

'In the dynamic field of property development finance, expertise, perseverance, and strategy acumen are key. This has been exemplified in a recent successful deal closed by Peter Williams, Empire Global Finance's Head of Property Development, who has demonstrated exceptional skill in providing bespoke, tailored solutions to clients seeking finance for commercial property development. 

The Hoo: A Unique Challenge

The property in question, known as 'The Hoo', is situated in the desirable residential area of Belsize Park, Hampstead, to the north-west of central London. The Hoo was purchased at auction in February 2019 for £5,500,000, despite an earlier bid of £7,000,000 in December 2018. Having previously been a hospital, the intention behind this acquisition was to develop the property into three high- end residential units.

Complexities and Strategic Solutions

The Hoo's redevelopment was fraught with challenges. The property is a Grade 11 listed building in a conservation area, necessitating extensive and costly planning efforts. The planning process for such properties is notoriously stringent, involving rigorous deliberations with planning authorities. 

The client approached Empire at a critical juncture when their existing loan term had ended. The immediate need was to secure a lender willing to re-bridge the loan to conclude the full planning consents - a challenging task given the reluctance of most lenders to re-bridge, especially for high-value residential projects.

Empire advised of the need to implement a team of top-tier professionals, including planning experts and legal advisors, specifically suited for the complexities of 'The Hoo'. This decisive action was crucial in overcoming bureaucratic hurdles and advancing the project towards obtaining the necessary planning the consents.

Securing the Loan 

With planning issues addressed, Empire's Head of Property Development shifted focus to securing a development loan facility. The objective was to transform 'The Hoo' into three self-contained residential units within the existing structure:

•  The Main House with Link: A five-bedroom single dwelling occupying the main parts of the listed structure over two floors. An extension, including two guest/ staff bedrooms and a cinema room, will be added to the west of the main house.
• The Annex: A five-bedroom single dwelling located to the rear of the property, accessible from Lyndhurst Gardens.
• The Lodge: A four-bedroom single dwelling with independent access from Lyndhusrt Gardens. This unit will be arranged over three floors and, due to the site's topography, the lower ground floor will open directly onto the garden.

Despite the high stakes, Peter successfully negotiated a development loan of approximately £11,000,000 from West One Loans with the invaluable assistance of their Development Finance Portfolio Manager, Steve Thompson, and Head of Development Finance, Guy Murray. Their expertise in this market was crucial to completing the transaction, allowing West One Loans to move at an optimal pace for all the parties involved.

They understood the proposition and issued terms within 48 hours. From inception to completion - including valuation, QS reports, legal processes, and finalisation - the process took only a few months. This is a testament not only to West One Loans but also to their excellent legal team.

Leona Ho and Avi Barr of BBS Law came to the table with their impressive work ethic while remaining cool under pressure. Their ability to ensure the best interests of their client and get the deal over the line made it a real pleasure to work with them. 

The Outcome

Empire Global Finance is always committed to reaching the optimal outcome. The successful closure of this deal not only underscored Empire's capability to handle complex property development finance cases but also highlighted the importance of bespoke property development finance cases but also highlighted the importance of bespoke solutions tailored to meet specific client needs. 'The Hoo' is now set to be transformed into valuable residential properties, marking another significant achievement for both Empire and West One. 

This completion is a testament to the strategic expertise and dedication required to navigate the complexities of property development finance. By securing the necessary planning consents and financing, Peter Willians has once again proven his ability to deliver outstanding results.