£25m fully affordable housing scheme for Lewisham unveiled by Southern Grove

Plans to provide dozens of affordable homes on a derelict site in Lewisham as part of a £25m housing scheme have been unveiled today by developer Southern Grove.

The 39 apartments in New Cross will all be available at either London Affordable Rent or for purchase through Shared Ownership.

Affordability problems are particularly acute in London, where many key workers, young families and those on lower incomes have been priced out in recent years. In Lewisham, the average price of a flat or maisonette is £353,3391, well above the UK average of £204,849.

Southern Grove’s design-led scheme, called Eckington Yard, is the latest in a series of fully affordable projects announced by the developer as part of its ambition to use intelligently structured land deals to boost the supply of high quality affordable housing in and around the capital.

The project will comprise 18 one-bed, 17 two-bed and four three-bed apartments on the site of a former branch of Plumbase at 52-54 New Cross Road. The buildings have lately been occupied by squatters.

Every unit will boast dual aspect views over London and residents will enjoy a short 10-minute walk to both New Cross Gate and Queens Road Peckham Overground stations.

The scheme, designed by Dowen Farmer Architects, is split into three sections of varying heights, ranging from five to 11 storeys to lessen the impact on surrounding buildings.

The New Cross area is a focus for urban renewal, with the New Cross Gate Trust currently working in partnership with the local community and Lewisham Council to deliver regeneration in the area.

Southern Grove has just exchanged contracts on the site and will be submitting a full planning application this month.

Tom Slingsby, CEO of developer Southern Grove, commented:

“The striking design of this scheme means it will be one of the leading architectural lights of a wider regeneration that is going to grip this area of London over the next few years.

“Families and workers on lower incomes all over the capital are desperately in need of more high-quality affordable housing and these homes will help more of them remain where they want to be, in the heart of London.

“As a fully affordable project targeting key workers, Eckington Yard is going to set a high bar for other developers to follow.

“The lack of affordable homes in London represents a clear danger to the capital’s ability to house, in an inclusive way, huge sections of the workforce who have a hand in its success and resilience.”

Aspen completes £150k development exit bridge using only desktop valuation

Aspen Bridging has completed a £150k development exit bridging loan on a remote property in Wales, using its desktop valuations system to overcome national lockdown restrictions.

The money was required to complete the current project in Llangollen, which has £50k of works outstanding, with the remainder being used to improve cashflow to secure the next development project nearby.

The case was further complicated as the current site was not signed off by building control and required rectifying works, plus the warranty was not finalised. A quick turnaround was also needed to ensure the subsequent purchase did not fall through.

The loan was completed on the lender’s stepped rate product, with the deal starting at 0.59% per month for the first half of the 12 month term.

Jack Coombs, director at Aspen Bridging, said: “This case is testament to our expertise in development exit transactions, and would not have been possible without our desktop valuation system which was cost effective and time efficient in meeting the deadline for the client.

“Covid is still causing disruption to normal practices, especially at that time of instructing the valuation as there had still been lockdown restrictions in Wales making it almost impossible to get a physical inspection.

“Our flexibility for development exit deals enabled the client to complete on their next site purchase even though the final warrantee hadn’t been obtained and there were further delays to the building control sign-off. Given all the circumstances surrounding the deal this is a pretty unique completion.”

The case was presented to Aspen by Zara Brindley of Top 10 Finance and, in-line with service level agreements, was handled from start-to-finish by underwriter, Saif Khalique.

The lender issued a fully-costed illustration within 15 minutes and a submitted post-search DIP in one hour. Legals and desktop valuations were instructed the next day following authorisation from the client and the broker. Undertaking was then received same day.

Meetings with the client were undertaken by Facetime the following day, whereby the applicant was updated on the case and directed on how to ensure a swift completion using Aspen’s remote signing processes and witnessing agreements.

City Finance Brokers and Ultimate Finance complete first CBILS bridging loan

City Finance Brokers, the specialist mortgage and finance brokerage, has become the first broker to complete a bridging loan facility with Ultimate Finance under its new government-backed Coronavirus Business Interruption Loan Scheme (“CBILS”) bridging facility with a £1.9m loan.

The facility is being funded by Ultimate Finance and guaranteed by the British Business Bank (UK government) and has been secured against a new residential development in Grimsby known as “The Cooperage”.

The scheme has seen the sensitive transformation of a historic former brewery into a collection of 20 luxury apartments which have now completed.

The scheme was impacted by the Covid-19 lockdown as it neared completion, suffering a four-month delay as a result of suppliers and sub-contractors being unable to be on-site when the construction industry was closed by the government. Following the re-opening of the industry, the site has now reached practical completion and has been launched with extremely positive responses including a possible local civic construction award.

The Ultimate Finance facility provides the client with a development exit strategy, giving them time to sell the units at market value, removing the pressure to repay before the sales can be completed.

Mark Horne, managing director at City Finance Brokers, said: “The CBILS is a hugely positive and welcome initiative for the industry that will undoubtedly support many businesses as they seek to overcome the challenges posed by the ongoing global pandemic. We are delighted to have been able to secure this development exit loan for our client, enabling them to continue their sales efforts without the adverse impacts of time pressures.”

Sam Cousins, regional director, Ultimate Finance, said: “Our CBILS backed Bridging loans enable us to support clients whose developments or properties have been impacted by Covid-19, and the closure of the construction industry. We are delighted to have been able to support City Finance Brokers and their client with the funding required to get ‘The Cooperage’ finished and on the market, removing the financial pressure at this time.”

Adrian Smith, owner of The Cooperage, said: “The last few months have been challenging for many businesses like ours and this loan has come as a lifeline for us. We are delighted to have secured this development exit loan to allow us to sell the remaining units over the course of the next 12 months following the transformation of one of Grimsby’s most historic buildings, a former brewery in the centre of this up and coming town, into a collection of luxury apartments fit for modern living.”

Future is green for Highland house builder

A Highland property developer is set to launch the first five units of a 38-plot development despite months of disruption caused by Covid-19, thanks to a six-figure funding package from Bank of Scotland.

Allan Munro Construction is a family-owned business that specialises in building residential developments across the Highlands, predominately within the Cairngorms national park.

The Peaks, based in Aviemore, is the business’ latest development which was due for completion in May 2020. However, construction of the homes was paused for three months in response to government guidance, and only recently recommenced.

Prior to the pandemic, and to support its green ambitions for the development and secure cashflow during the build of the new homes, the business approached Bank of Scotland, securing a six-figure funding package. The package included a development loan and specific funding as part of the Clean Growth Funding Initiative (CGFI). This initiative is designed to support clients’ investment in a lower-carbon future by providing discounted lending to enable firms to invest in reducing their environmental impact.

The business used the CGFI to install a biomass district heating system at the development, combating the issue of fuel poverty in certain areas of the Highlands where limited alternatives to electric heating are available. The new system will reduce the carbon footprint of the development and save homeowners at least 20% compared to standard electricity costs.

Phase one of The Peaks is now due to complete in September which will include 9 affordable units available for rent & five private 3 -bedroom terraced homes for sale. Phase two will commence in September with plans to build 24 two and three-bedroom apartments again for the private market.

Cameron Munro, director at Allan Munro Construction, said: “The construction industry like most business has been hit hard during the pandemic. During lockdown we were unable to progress with works on site apart from selected landscaping & fencing works, where social distancing would allow. Thanks to Bank of Scotland, we already had cash flow in place that meant we could quickly pick-up operations again as restrictions began to lift, putting us in a strong position.

“The sustainability aspect of the funding is a real benefit to our company as we were able to demonstrate through the use of sustainable heating systems & highly insulated timber frame systems that we could meet the criteria set out in the CGFI funding. We as a company are committed to building in the most sustainable way while meeting the demands of increasingly-environmentally conscious homebuyers.

“Despite the pandemic disrupting operations, we’ve already secured two sales for the phase one private houses and are ready to commence foundations within the next six weeks on phase two.”

David Henderson, relationship manager at Bank of Scotland, said: “Allan Munro Construction is one of many firms impacted by the recent lockdown measures. Learning to adapt during these challenging times and using our support has resulted in the business being in a strong position, ready to progress with plans for the second half of 2020.

“At Bank of Scotland, we’re committed to supporting businesses like this as we all work through these challenging times and prepare ourselves for future success. Our CGFI funding will also continue to support the UK’s goals for clean growth and assist our customers in reducing their carbon footprint.”