Development finance lender Magnet Capital has completed and been redeemed on a £1,009,475 loan funding the construction of a bespoke two-bedroom dwelling hidden behind King’s Road in Chelsea, SW10.
Specialist finance advisory firm Karis Capital introduced and structured the deal, and also progressed the legal workstreams throughout the transaction and handled the redemption. Karis Capital arranged the development finance package and continued advising through to completion.
The site sits within the Royal Borough of Kensington and Chelsea’s Sloane/Stanley Conservation Area, a status that added an extra layer of planning sensitivity to an already complex build. The completed property is a single-storey house plus basement, just over 1,000 sq ft, finished with zinc and copper-bronze cladding, American white oak timber detailing, a sunken courtyard garden and a flat green roof.
A complex development finance deal in Chelsea
No vehicular access existed anywhere on the site. Builders reached it only via a narrow pedestrian passageway shared with the rear access of several commercial and residential tenants fronting King’s Road.
Workers carried every item, from reinforcement steel and concrete to tools, spoil and machinery, in and out by hand using wheelbarrows, trolleys and specialist micro-equipment. The passageway’s constraints meant materials could only be introduced one load at a time, and working space on site remained extremely limited throughout the build.
21 Party Wall Awards
The dense urban location, surrounded by residential and commercial neighbours, meant the development required an unusually high number of Party Wall Awards. Magnet Capital and Karis Capital negotiated 21 in total, covering:
- freeholders and leaseholders
- studios and retail units
- a neighbouring school
Each award required individual negotiation of security of expenses, engineering details, drainage design and fire escape strategy.
A decade in the making: the planning history
The site’s planning journey stretched back over a decade. A previous permission granted on appeal in 2014 had lapsed, and two further applications were withdrawn before permission was finally granted in September 2022.
“This was one of the most operationally challenging sites we have ever funded, a genuinely hidden gem behind one of the world’s most famous streets, with constraints that would have been prohibitive without the right team around the table,” said Ashley Ilsen, co-chief executive at Magnet Capital (pictured).
“No vehicular access, 21 Party Wall Awards, a planning history going back to 2013 and a basement that cost more than half the entire build budget to construct. Our underwriting team worked through every one of those issues methodically, and the fact that this loan has redeemed successfully and on time is a testament to the experience of the borrower, the quality of the broker relationship with Karis Capital, and the conviction of our team in backing the right people on the right project.”
“This was exactly the kind of deal that demonstrates the value of working with the right lending partner,” added Luke Casey of Karis Capital.
“From the outset, Magnet Capital’s team understood the complexity and never wavered in their commitment to getting it done. Their ability to look beyond the obvious challenges and back the right people is what sets them apart. We are proud to have introduced this transaction and delighted to see it complete successfully.”
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