ASK Partners has provided a senior loan facility to the joint venture between residential property development company HUB, and global investment firm, H.I.G. Capital, in a deal brokered by BBS Capital.
The facility supported the JV’s recent acquisition of a cleared 1.2-acre development site in central London.
The site is the final parcel of undeveloped land on the Elephant Park masterplan site at Elephant and Castle and benefits from outline planning permission for a residential development.
The JV plans to seek permission for a residential-led scheme of significant scale including shared-living homes, affordable homes, new public realm, ground floor retail provision and a health hub.
The masterplan has to date delivered 3,000 homes, with more coming to market in 2025, and 150k sq.ft. of retail, plus an improved underground station and a new University of Arts London campus.
Miles Keeley, head of acquisitions at HUB, said: “This deal is part of our ongoing strategy to build a portfolio of assets in the living sector in ultra urban places, targeting central London and other key regional cities.
“This is our second deal with H.I.G. and our third financing with ASK, with whom we have developed a strong working relationship.
“We were pleased to work with both counterparties on this transaction and we look forward to being custodians of this incredible site.”
Elliot Blatt, head of origination at ASK, said: “We are delighted to be working with HUB and H.I.G. again, their strategy very much resonates with our underwriting approach.
“Having bought the site for £42m, potentially under market value, the JV has injected significant equity into the project putting ASK’s loan at a sensible loan to value.
“The partnership has a strong track record and this is an excellent development site.
“It is a great option for a residential-led strategy given the area’s strong transport links and the considerable inward investment into its housing, retail and public realm supply over the last 10-15 years to transform it into a desirable hub for living.”
Adam Buchler, partner at BBS Capital, added: “It was a pleasure to complete another financing for our clients H.I.G Capital and HUB and to continue to build on our relationship with ASK with whom we’ve worked on a number of important development propositions.
“The site presents a strong investment opportunity and we look forward to seeing plans come to fruition.”
