Hurlington Capital has commenced construction of a mixed-use scheme in West London having secured a £112m development facility from a consortium of lenders for its joint venture with the V-Fund.
Hurlington’s Bollo Lane scheme comprises two buildings: one providing 429 purpose-built student accommodation (PBSA) rooms and circa 12,000 sq ft of commercial space, and a second building providing up to 95 social rented homes and circa 23,000 sq ft of commercial space.
The development is located between Acton and Chiswick, approximately a five-minute walk to South Acton, Acton Town and Chiswick Park underground stations.
The development facility – provided by a consortium of lenders, led by Precede Capital Partners and comprising Deva, Nomura and Firma Partners – follows Hurlington securing Gateway 2 consent from the Building Safety Regulator for both buildings and an agreement with Ealing Council to acquire the 95 social homes.
The facility replaces an earlier loan from Delancey, which was provided to cover the Gateway 2 process and to allow enabling works on site.
Hurlington Management, the business’ development management arm, will oversee the delivery of the project for the JV and has appointed HG Construction as main contractor on a contract worth £76m. KS4 is providing project management, cost consultancy and employers agent services for the project.
Harry de Lotbiniere, managing director of Hurlington Management, said: “Our development management business continues to grow with the appointment to deliver Bollo Lane; a project that epitomises the approach that has seen Hurlington deliver schemes across London: finding a complex site, unlocking it through deep sector knowledge and bringing together a range of partners to create a best-in-class scheme. We’re grateful to those partners, including our lenders and Ealing Council, for working so closely with us to deliver these new homes for London.”
Jamie Feldman, CEO of Hurlington Capital, added: “Having been investing in residential and mixed-use schemes in London for 17 years, we have never seen a period in which pressure on viability has been more intense. We are delighted to bring together the funding to deliver this exceptional scheme despite this challenging environment and are continuing to invest across multiple sectors in the capital.”
Randeesh Sandhu, chief executive officer of Precede Capital Partners, said: “This transaction demonstrates our continued ability to provide flexible green financing solutions for high-quality and sustainable residential developments in attractive locations. We are pleased to partner with Hurlington Capital and the V Fund, highly experienced sponsors with a proven track record, on this well-located opportunity.
“The significant regeneration already underway in the surrounding area is hugely encouraging, with the next, TfL-led phase expected to attract substantial investment and support long-term value creation. We have high conviction in London’s PBSA sector, which remains underpinned by a fundamental supply and demand imbalance.”
