Atelier funds £12.4m conversion to deliver 60 new homes in Streatham

Development finance lender Atelier has completed a £12.4m development loan, structured at 66% loan-to-value (LTV) over an 18-month term, to fund 60 new apartments in Streatham.

Following the recent £8.7m funding announcement of a residential development in Lewisham, the lender has agreed its second loan completion in London in as many weeks.

The loan provides an initial provision of a £5.85m net advance at 90% day one LTV to enable the acquisition of the site in a competitive bidding process.

The new development will see the conversion of a former office building into 60 studio apartments, as well as two existing ground-floor commercial units.

The 60 new homes will play their part in easing the considerable housing shortages in the area, with Lambeth Council implementing its ongoing New Homes Programme to deliver more than 2,000 new homes by 2030.

Rav Kudhail, lending director at Atelier, said: “This is a new borrower relationship and we worked with our client to execute this transaction in four-weeks from enquiry to completion.

“We supported our borrower through the bidding process and provided a net advance that secured the site and structured the facility to ensure the completion within the tight timeframes.”

Rajiv Nehru, CEO at Lotus Living, added: “As a first-time partner, the Atelier team impressed us with their speed and professionalism, delivering development funding with exceptional execution that supported our project’s timely progression.”

Nick Swerner, director of GLPG, said: “We were delighted to close this transaction with Atelier who contributed significant senior leadership time on their side in order to make the transaction meet the tight transaction times.

“Atelier showed significant commerciality to reach mutual conclusions when hurdles were presented and we look forward to working with the team again in the future.”