£3.5m loan completion for new London aparthotel funding
A £3.54m loan to property joint venture has been completed to fund the development of a new aparthotel in Oval in London.
OakNorth Bank has provided the £3.54m property development finance facility to a joint venture between MELT Homes, which has built over 100 properties in London Gloucestershire and Kent, and Espalier Ventures.
The capital will be used to fund the acquisition of a mixed-use property in Oval, and in its place, develop an aparthotel of up to 175 units, subject to receiving planning permission.
The finance will be used to fund the acquisition of a mixed-use property at 68‐86 Clapham Road in Oval, and in its place, develop an aparthotel with between 120-175 units, subject to receiving planning permission.
The site is located within walking distance of several Zone 1 underground stations - Oval, Stockwell and Vauxhall - as well as the South Western railway line.
Evan Maindonald, director at MELT Homes, said: “We are very excited about this project - the site is an excellent location and has so much potential, especially given how popular the area is with tourists and cricket fans.
“Whenever there is a need to submit planning permission, speed is of the essence, which is why we felt OakNorth Bank would be the right partner for this transaction.
“Hemesh and the team have a thorough understanding of the market, as well as a wealth of experience working with joint venture structures, so were able to design a facility that met our needs in the timeframe we needed it.”
Rick Gibbs, of Espalier Ventures, added: “We are delighted to be involved in this deal with MELT and OakNorth. It is our fifth deal in the last six months and is a good fit for us, given that we are looking to increase our exposure to Real Estate investment with a particular focus on Aparthotel, Co-Living and selected areas of Prime Central London.”
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