Triple Point’s property development team has originated a £17m development finance facility for a mixed-use residential scheme off the King’s Road in Fulham, introduced by broker LEXI Finance. The deal is the largest single loan the team has originated to date.
The facility has been provided to Sotheron Developments, an experienced residential developer, and will fund the construction of 31 apartments across two blocks alongside two commercial units.
One block will deliver 21 private sale apartments; the other will house 10 affordable homes, pre-sold to Westway/Karibu Housing Association. The constrained nature of the site has required construction of a double-storey basement, adding further complexity to the build.
Structured at 64% loan-to-GDV, the facility incorporates a recycling mechanism unusual for an apartment-led scheme. Proceeds from the pre-sold affordable units will be recycled to fund construction of the private block, reducing the lender’s exposure and the developer’s overall cost of finance while ensuring the required funding is available from day one. The structure was developed in partnership with LEXI Finance.
The deal follows a recent increase in Triple Point’s facility limit to £20m, and demonstrates the team’s capacity to support schemes at the upper end of its lending range.
“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,” said Philip Bird, head of origination, property development, private credit at Triple Point.
“Sotheron Place is a landmark transaction for our Property Development team, both in scale and structure. Adam Wass led the transaction on behalf of Triple Point, working closely with LEXI Finance and the borrower, to structure the package around the project’s requirements, which enabled us to bring this complex deal to completion. It demonstrates the type of tailored, well-structured lending we can originate as we scale.”
Sam Le Pard, director at LEXI Finance, also reflected on the deal’s trajectory from introduction to close.
“I’m proud to have worked on this transaction over a sustained period, supporting a long-term client on a unique deal,” he said.
“Complex transactions can sometimes become strained as they progress towards completion, however, this deal was the opposite from the off, with all parties pulling in the same direction towards completion.
“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. I can’t wait to visit the site as the transaction progresses, although I think I’ll try and time my first visit for when it’s not just a double-storey hole in the ground!”
A spokesman for Sotheron Developments welcomed the approach the lender brought to the transaction.
“Working with a financing partner who is genuinely flexible made all the difference on a site as complex as this one,” the spokesman said.
“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. We’re pleased to be moving forward with a scheme that delivers much-needed homes in Fulham, and we look forward to working with Triple Point again.”
Triple Point was advised by RWK Goodman, with Lambert Smith Hampton acting as valuer and Dalbergia serving as independent monitoring surveyor.
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