Atelier funds £14m scheme of 24 apartments on Denmark Hill
Specialist lender Atelier has agreed funding for the development of 24 energy efficient apartments at Denmark Hill, South East London. The £14m scheme will regenerate a redundant municipal site to provide much needed homes for workers in the capital.
The former civic building will be transformed into a mixture of exciting one, two and three bedroom apartments, and will incorporate a roof garden with magnificent views across the city. Building work is expected to begin in the autumn.
Atelier has seen a surge in enquiries from SME developers since the beginning of the pandemic as mainstream lenders left that part of the market sorely underserved. Planning for the four-storey 23,639 sq ft Denmark Hill scheme was granted in 2016 and is now set to become a reality after Atelier agreed the necessary funding to bring the vision to life.
Developer and owner The Edition Group expects construction to take 18 months, and apartments will be competitively priced to attract local buyers. The deal was brokered by Dan O’Neil, director of real estate Debt advisory at SPF Private Clients.
The site is well served by public transport, with mainline train stations at Denmark Hill, Herne Hill and North Dulwich. Denmark Hill is also connected to the London Overground Network. These stations provide rapid commutes to London Bridge, Clapham Junction and London Victoria.
Despite the shift in demand during the pandemic for bigger homes with more outdoor space, apartments are now expected to start making a comeback in the near future.
The Denmark Hill scheme is firmly in keeping with Atelier’s focus on deploying institutional capital ethically and responsibly to deliver positive Environmental, Social and Governance (ESG) outcomes and lasting value for local communities. In May, Atelier announced it was on track to deliver more than £300m of funding this year after sealing strategic partnerships with a trio of financial institutions including M&G investments and Paragon Bank.
Martin Gilsenan, director of origination at Atelier, commented: “The Denmark Hill scheme is firmly in keeping with Atelier’s mission to power urban regeneration through sustainable, affordably priced housing.
“While the pandemic saw many families look to the countryside for greater space, London is now roaring back into life as offices reopen and businesses start to trade as they did before. In the coming months and years, we expect the resurgence of the capital to become a magnet for home-buyers once more.
“Denmark Hill is exactly the sort of project we like to fund – it combines a strong business case with a strong and lasting contribution to the local area.”
SPF director of real estate debt advisory Dan O’Neil said: “This was a highly complex deal which involved substantial section 106 obligations. I worked closely with Atelier, the borrower and the professional teams over a number of months to navigate a path to a highly successful outcome.”
The Edition Group director John Smart said: “Atelier’s record of supporting sustainable developments and structuring bespoke lending solutions made them the perfect fit for Denmark Hill. This is a carefully considered scheme which will appeal to design focused Londoners, and we look forward to beginning work in the very near future.”
