Atelier funds £7.3m acquisition and build of Lewisham apartments

Development lender Atelier has completed a £7.3m facility to fund both the purchase of a brownfield site in the London Borough of Lewisham and the construction of 17 purpose-built apartments on it.

The loan runs for 24 months and is set at 67% loan-to-gross-development-value (LTGDV). The deal was arranged by Mantra Group, the debt advisory arm of financial and real estate advisory group BTG.

A family-focused scheme

The finished development will favour larger homes. It will have fifteen three-bedroom apartments and two two-bedroom units. That mix stands out in a London market where new-build supply tends to favour studios and one-beds. The site sits in an area with strong rental demand from commuters and working professionals, drawn by Lewisham's transport links to central London.

Working through late complications

Both parties said the deal was not straightforward. Tricia Martin, Lending Director at Atelier, said highly experienced developers are delivering the scheme. She added that the lender and Mantra worked side by side to resolve unexpected issues, including complications that arose in the final stages before completion.

It was a real team effort to get the deal over the line.

Nick Neophytou, Managing Director of Mantra Group, said the transaction threw up challenges his team had not seen before, despite their years of experience. He credited Atelier's commercial approach and judgement with helping to get it done.

Busy fortnight in the capital

This is Atelier's second London completion in two weeks. It follows a £46.1m loan for an office-to-residential conversion in Hammersmith. Together, the two deals show the lender backing schemes of very different sizes, from a small brownfield build to a large change-of-use project.