HTB provides £2.4m development finance facility for South London regeneration project

"The project evolved as it progressed, and it was important that the funding reflected those changes while maintaining certainty for the borrower"
- Sarah Dix - Hampshire Trust Bank

Hampshire Trust Bank (HTB) has provided a £2.4m development finance facility for a mixed-use scheme in Mitcham, South West London, introduced by broker P10 Financial Group.

The development will deliver eight residential units and two commercial units on a high street site, targeting first-time buyers, young professionals and investors alongside businesses seeking modern commercial space.

The project forms part of the ongoing regeneration of an established South London suburb. Its location reflects continued demand for well-placed residential development supported by local revitalisation activity.

Structuring the facility was not straightforward. The transaction required a tailored approach to accommodate a planning gain delay and support the borrower through early-stage challenges around contractor engagement.

HTB adapted the facility as the project evolved, working closely with both the broker and client to maintain progress and keep the development aligned with the borrower's plans.

"This was a transaction that required a flexible approach to both structure and delivery," said Sarah Dix, lending director at Hampshire Trust Bank (pictured).

"The project evolved as it progressed, and it was important that the funding reflected those changes while maintaining certainty for the borrower. By working closely with the broker and client, we were able to support the development through those challenges and keep it moving forward."

Dix led the deal, supported by Athens Piponides, Scott Apps and Gemma Pyhpers. The transaction was introduced by Jack Grey, associate relationship manager at P10 Financial Group.

"This is a longstanding client relationship, and the project required a lender that understood both the scheme and the client's objectives from the outset," Grey said.

"While the development presented challenges, a collaborative approach between lender, adviser and borrower ensured these were worked through, and the facility remained aligned to the needs of the scheme. It will be positive to see the site transformed into well-designed apartments and modern commercial space for the Mitcham community."

For HTB, the deal opens a new borrower relationship while building on an established one with P10 Financial Group.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, placed the deal in a broader context. 

"Smaller-scale developments like this are a key part of how new homes are delivered in established urban areas, but they rarely follow a straight path from planning through to delivery," he said. "Delays, changing requirements and practical challenges on site are part of the reality for SME developers."

"In that environment, having a funding structure that can adapt as a project evolves is critical," he added. "Specialist lenders play an important role in supporting these schemes, providing the flexibility and continuity needed to keep developments moving and bring forward regeneration at a local level."