£5.5m loan backs Belgravia townhouse redevelopment

CapitalRise has provided a £5.5m senior development loan to fund the acquisition and redevelopment of a townhouse on Chapel Street in Belgravia, turning a currently uninhabitable property into a five-bedroom family home.

Arranged over six floors and extending to approximately 3,500 sq ft in its current form, the townhouse has remained unoccupied and unmaintained for many years. The approved redevelopment will include a basement extension and the replacement of the existing conservatory with a new single-storey extension, bringing the property to seven levels once complete.

Planned features include air conditioning throughout, a gym and cinema area, video entry systems and premium interior finishes. Structured finance advisory firm Saxbury introduced the transaction, which involved a simultaneous share purchase agreement, demanding execution timelines and close collaboration across multiple parties to ensure a timely completion.

Key features of the redevelopment include:

• A basement extension and replacement of the existing conservatory with a single-storey addition
• Seven levels of accommodation once complete, up from six floors currently
• Air conditioning throughout, plus a gym, cinema area and video entry systems
• Premium interior finishes designed for a high-end family home

"This was one of our more complex transactions and is a great example of CapitalRise's ability to navigate challenging situations whilst maintaining certainty of execution for our borrowers," said Raf Chowdhury, lending director at CapitalRise (pictured).

"The deal required us to manage evolving circumstances, a simultaneous share purchase and tight completion deadlines, all while delivering a structure that worked for every party involved."

He added: "We're delighted to support an experienced sponsor in transforming this historic townhouse into a high-quality family home, and I'd like to thank all of the teams involved, whose collaborative approach helped bring this transaction to a successful completion."

Kristian Hoy, head of structured finance at Saxbury, said the deal reflected CapitalRise's flexibility under pressure. "Throughout the process, CapitalRise demonstrated an exceptionally collaborative and solutions-focused approach, working closely with all parties to navigate evolving circumstances and maintain momentum towards completion," he explained. 

"Their flexibility, commercial mindset and commitment to finding practical solutions were instrumental in achieving a successful outcome."

He added, "We look forward to seeing this outstanding scheme delivered, creating what we believe will be one of the finest residential developments in one of London's most prestigious neighbourhoods."

The Chapel Street scheme is one of several complex development finance transactions to complete in prime central London this year, as lenders continue to back specialist redevelopment projects that require both technical structuring and tight completion timelines.