Sotheron Developments has secured a £17m facility from Triple Point to support the construction of a mixed-use residential development off the King’s Road in London.
The scheme will deliver 31 apartments across two blocks in addition to two commercial units. One block will feature 21 private sale apartments and the other will house 10 affordable homes, pre-sold to Westway/Karibu Housing Association.
Structured at 64% loan-to-GDV, the facility incorporates a recycling mechanism, with proceeds from the pre-sold affordable units recycled to help fund construction of the private block, reducing both the lender’s exposure and the developer’s overall cost of finance, while ensuring the required funding is available from day one. The structure was developed in partnership with introducing broker LEXI Finance.
A spokesperson for Sotheron Developments, said: “Working with a financing partner who is genuinely flexible made all the difference on a site as complex as this one. Triple Point took the time to understand what we needed and structured the facility around it, rather than asking us to fit a standard template. We’re pleased to be moving forward with a scheme that delivers much-needed homes in Fulham, and we look forward to working with Triple Point again.”
Philip Bird, head of origination, property development, private credit at Triple Point, added: “London continues to need housing delivered at pace, particularly on constrained brownfield sites where schemes like this often fall outside the appetite of mainstream lenders. Sotheron Place is a landmark transaction for our property development team, both in scale and structure. Adam Wass led the transaction on behalf of Triple Point, working closely with LEXI Finance and the borrower, to structure the package around the project’s requirements, which enabled us to bring this complex deal to completion. It demonstrates the type of tailored, well-structured lending we can originate as we scale.”
Sam Le Pard, director at LEXI Finance, said: “I’m proud to have worked on this transaction over a sustained period, supporting a long-term client on a unique deal. Complex transactions can sometimes become strained as they progress towards completion, however, this deal was the opposite from the off, with all parties pulling in the same direction towards completion.
“The best example of this was collectively agreeing a recycled funding solution, which meant a lower risk profile for the lender and reduced costs for the borrower, without any less funding on day one. I can’t wait to visit the site as the transaction progresses, although I think I’ll try and time my first visit for when it’s not just a double-storey hole in the ground.”
Triple Point was advised by RWK Goodman, with Lambert Smith Hampton acting as valuer and Dalbergia serving as independent monitoring surveyor.
