Triple Point has originated a £17m development finance facility for a mixed-use residential scheme in Fulham, marking the largest single loan the lender’s property development team has originated. The transaction was introduced by broker LEXI Finance.
The facility will fund construction of 31 apartments across two blocks alongside two commercial units off the King’s Road. Developer Sotheron Developments will deliver 21 private sale apartments in one block, while the second block will contain 10 affordable homes pre-sold to Westway/Karibu Housing Association.
Recycling mechanism reduces exposure
Structured at 64% loan-to-gross development value, the facility incorporates a recycling mechanism whereby proceeds from the pre-sold affordable units will be recycled to fund construction of the private block. This structure reduces the lender’s exposure and the developer’s overall cost of finance whilst ensuring required funding is available from the outset.
The site’s constrained nature has required construction of a double-storey basement, adding complexity to the build. The deal follows a recent increase in Triple Point’s facility limit to £20m, demonstrating the team’s capacity to support schemes at the upper end of its lending range.
Philip Bird, head of origination, property development, private credit at Triple Point, said: “London continues to need housing delivered at pace, particularly on constrained brownfield sites where schemes like this often fall outside the appetite of mainstream lenders.”
Sam Le Pard, director at LEXI Finance, noted the collaborative approach taken by all parties. “The best example of this was collectively agreeing a recycled funding solution, which meant a lower risk profile for the lender and reduced costs for the borrower, without any less funding on day one,” he said.
Complexity of development finance
The transaction highlights the growing complexity of development finance structures in London’s constrained urban sites. While conveyancing has been identified as a top transaction bottleneck in the residential sector, development finance arrangements require careful structuring to balance risk and funding requirements.
A spokesman for Sotheron Developments said: “Working with a financing partner who is genuinely flexible made all the difference on a site as complex as this one. Triple Point took the time to understand what we needed and structured the facility around it, rather than asking us to fit a standard template.”
Triple Point was advised by RWK Goodman, with Lambert Smith Hampton acting as valuer and Dalbergia serving as independent monitoring surveyor. The development will deliver housing in an area where rental competition has intensified across London’s property market.
The facility demonstrates the appetite among alternative lenders to support brownfield residential schemes that require tailored financing solutions beyond standard development finance templates.