Real estate funding specialist ASK Partners and OakNorth Bank have provided a £44.5m senior development and acquisition loan to privately owned property development company Sheen Lane Developments, to fund the acquisition and refurbishment of a former department store.
The acquired 0.5-acre site located in the well-connected, affluent west London submarket of Richmond, is a freehold, 61,000sqft former House of Fraser department store which includes further adjacent retail space along Paved Court, making a total of 75,528sqft.
Acquired with vacant possession, the site holds a prominent high street position and has planning consent in place for extensive refurbishment to create a mixed-use retail and office development.
The exceptionally experienced Richmond-based developer, Sheen Lane Developments, intends to deliver a landmark mixed-use commercial scheme and will apply to the Local Authority to change the consented use class to Class E, broadening the tenant mix of the scheme to include a health club and restaurants.
The intention of these planning amends is to enable the delivery of a best in class commercial and leisure focal point for Richmond, whilst improving the public realm at this key intersection between the high street, Richmond Green and Richmond Riverside.
The 30-month loan facility has been provided on a 65% LTGDV.
Martin Tynan, director at Sheen Lane Developments said: “We are delighted to have made this acquisition with financing from ASK and OakNorth Bank.
“This building is of great importance to the vitality of Richmond town centre, and we have a great tenant line-up looking to take occupation in 2023.
“We look forward to working with the Local Authority to realise the potential of this building to reinvigorate this end of the high street and retain Richmond’s competitiveness as a commercial and leisure destination.
Elliot Blatt, investment manager at ASK added: “From a finance perspective we were delighted to work with Sheen Lane. The company has an excellent reputation and they have a strong business plan and well-thought strategy for this scheme. I believe their scheme will make a great contribution to the public realm.”
Hemesh Patel, director of property finance at OakNorth Bank, concluded: “OakNorth Bank is always thrilled to partner alongside ASK to deliver specialist finance solutions for the UK’s real estate industry. The site in Richmond has excellent prospects and we look forward to watching the refurbishments take shape moving forward.”
