British specialist lender Atelier has provided a credit facility amounting to 7.3 million pounds. The funds provided will finance both the acquisition of the site and the turnkey construction of 17 flats on a brownfield site in Lewisham, south-east London. With the loan committed, delivery of the residential scheme on the former brownfield site is secured.
Structure and key terms of the development financing
The transaction was structured with a loan-to-gross-development-value (LTGDV) of 67 per cent. This ratio reflects the prudent risk assessment of alternative lenders, who focus on balanced equity and debt structures for new-build schemes in the current market environment.
A term of 24 months was agreed for the repayment and settlement of the credit facility. This two-year timeframe gives the developer the necessary window to carry out construction works following the completion of the land purchase and to initiate the subsequent exit strategy for the units.
- —Financing volume: 7.3 million pounds
- —Project scope: Acquisition and construction of 17 flats on a brownfield site
- —Location: Lewisham, south-east London
- —Loan terms: 67 per cent LTGDV with a 24-month term
Significance of alternative lenders for brownfield sites
The redevelopment of brownfield sites remains a central element in delivering new housing in London. In densely developed boroughs such as Lewisham, bringing disused land forward requires dependable partners, as inner-city plots present complex technical and planning challenges.
Schemes of this scale also underline the importance of specialist lenders within the UK construction sector. Mainstream commercial banks frequently retreat from small and mid-sized development finance, meaning independent providers such as Atelier play a pivotal role in bridging funding gaps in a timely manner.
By bundling the acquisition and construction phases into a unified structure, the scheme benefits from clearly defined parameters through to completion. The Lewisham project represents another step towards regenerating urban brownfield land across south-east London.
