£490k development finance backs two Anerley flats

Assetz Capital has announced that it has completed a development finance facility of almost £490,000 through its Elevate range. The loan backs the ground-up construction of two homes in Anerley, South London.

The 15-month facility is structured at 70% loan-to-value (LTV). It will fund two one-bedroom garden flats near Crystal Palace Park, set between two existing properties on an established residential street.

Elevate provides development finance to SME property developers building smaller ground-up schemes, and Assetz says the loans let them bring those schemes to market quickly.

The range launched last year and lends from £250,000 to £1.5m on residential schemes of one to 15 units across England and Wales. It builds on Assetz’s existing smaller-scheme lending, which totals £262m in facilities for schemes under £1.5m to date.

“This is exactly the type of opportunity we want Elevate to support,” said Lloyd Whiting, business development manager at Assetz Capital. “We worked closely with the borrower to understand the development and put a facility in place that gives them the support to move the project forward.

“It is great to see the scheme progressing and, importantly, two new homes being brought into development.”

The completion reflects Assetz Capital’s wider focus on supporting SME housebuilders throughout the development lifecycle, including borrowers delivering schemes of different sizes across the UK. The lender says it aims to widen access to specialist development finance so that more developers can build new homes.

“If we want to build more homes in the UK, we need to create opportunities for the next generation of SME housebuilders as well as continue supporting those already established in the market,” noted Andrew Fraser, chief commercial officer at Assetz Capital.

“This completion shows why Elevate is important. Having a lender willing to understand the individual, the scheme and how the funding can work is critical. We want to give credible developers the opportunity to progress and build from there.

“Small developments have an important role to play in delivering new homes across the country, utilising existing sites that are often in well-established areas, limiting disruption.”