CapitalRise has provided a £5.5 million senior development loan for the acquisition and redevelopment of a townhouse on Chapel Street in Belgravia. The finance will convert an uninhabitable property into a five-bedroom family home.
The townhouse, which extends to approximately 3,500 square feet across six floors, has remained unoccupied and unmaintained for several years. The approved redevelopment includes a basement extension and replacement of the existing conservatory with a single-storey extension, bringing the property to seven levels once complete.
Transaction structure
Structured finance advisory firm Saxbury introduced the transaction, which involved a simultaneous share purchase agreement and tight execution timelines. The deal required coordination across multiple parties to meet completion deadlines.
Planned features for the property include air conditioning throughout, a gym and cinema area, video entry systems and interior finishes designed for the residential market.
“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. “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.”
Development finance activity
The Chapel Street scheme is among several complex development finance transactions to complete in prime central London this year, as lenders continue to back redevelopment projects requiring technical structuring and tight timelines. The transaction comes at a time when new build housing listings have fallen to their lowest level since 2017, indicating continued pressure on residential supply in the capital.
Kristian Hoy, head of structured finance at Saxbury, said the deal reflected CapitalRise’s approach to complex transactions. “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 said.
The development finance market has shown resilience despite broader challenges in the property sector, with mortgage industry figures calling for policy reform to address accessibility issues affecting millions of potential homebuyers.
The Belgravia townhouse is expected to complete its redevelopment in the coming months, adding to the housing stock in one of London’s most established residential areas.