Featherstone Homes

UTB funds £30m south London development

United Trust Bank (UTB) is funding Featherstone Homes’ £30m property development in Bermondsey, south London.

The mixed-use scheme — comprising four blocks of up to nine storeys — will bring 61 new apartments and 1,600 sq m of flexible ground- and first-floor commercial space.

The project will include designated affordable and shared-ownership units.

UTB is lending circa £20m at 65% LTGDV on a three-year term to fund the scheme.

Featherstone Homes and its equity partner, Global Growth Capital, are providing the additional investment required to complete the project.

“I’m delighted that UTB is supporting Featherstone Homes’ latest exciting development which will bring much needed new homes to a vibrant, up-and-coming area of south London,” commented Philip Kirkwood, director of property development at UTB.

“We have been keen to work with Featherstone Homes for some time and, although a new customer to the bank, the company’s strong management and demonstrable track record of success assured us that despite the substantial investment required, this was a project UTB should back.”

Rowan Stewart, director at Featherstone Homes (pictured above), said that this was the group’s largest development to date.

“It was vital that we secured a flexible and competitive funding solution, and Global Growth Capital and UTB worked closely to deliver what we needed quickly and smoothly,” he stated.

“This is an exciting time for Featherstone.

“We have ambitious plans to undertake more projects and are actively looking to acquire further residential development opportunities in and around London.”

Work has already begun on site, with construction of the development expected to take two-and-a-half years.

The deal is the first JV between Featherstone Homes and Global Growth Capital.

Global Growth Capital’s investment is structured as a convertible mezzanine facility.

AJ Shazad, partner at Global Growth Capital, added that it was exploring the opportunity to deliver over 300 residential units in London over the next five years, targeting the below-£600,000-per-unit market.

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