United Trust Bank has provided a £35.5m financing facility for a mixed-use development scheme in south-west London. The commitment focuses on the UK build-to-rent sector and relates to a new-build development in the Earlsfield district, which comprises a total of 96 rental apartments alongside complementary space.
The recipient of the loan proceeds is development company Dominus New Homes. The newly arranged facility enables the developer to refinance an existing development loan. The debt restructuring takes place at a strategically important juncture, as the project approaches practical completion.
Refinancing ahead of practical completion
The step reflects the typical capital structure requirements found in institutional build-to-rent housing. When developments reach their final stages, the transition from pure construction to operational management frequently demands a realignment of liabilities. At this stage, construction loans are typically replaced by instruments designed to support the upcoming letting process.
For Dominus New Homes, the agreement with United Trust Bank ensures that the completion of the 96 residential units in Earlsfield can be finalised on secure financial foundations. Discharging the previous construction loan allows the developer to focus on the final handover of the building and the subsequent marketing of the units.
Key details of the commitment
- —Financing volume: £35.5m
- —Lender: United Trust Bank
- —Developer and borrower: Dominus New Homes
- —Project scope: 96 rental apartments as well as mixed-use space in Earlsfield, south-west London
The provision of the facility underscores the continued importance of the build-to-rent segment for the London residential market. Locations in the south-west of the capital such as Earlsfield are seeing sustained interest in high-quality rental accommodation, providing specialist lenders such as United Trust Bank with reliable parameters for structured financing.
