The development will provide six semi-detached and three detached homes, each with its own car parking and garden. The completed value of the project is £6.7m and Argyll Property Partners provided the developer with a loan of £625,000.
Schemes such as this help fulfil the demand for new homes for private owner-occupiers in the suburbs – within commuting distance of London – at affordable prices. The development involved the demolition of the existing houses on the site built in the 1930s and 1950s.
The delivery of new housing in and around Croydon is in response to market demand caused by Greater London’s continued growing population. Medium- to high-density schemes have targeted young people and couples priced out of more expensive parts of outer south and south-west London. Similarly, Croydon provides a wide choice of more affordable, good quality rental stock relative to the above neighbouring areas.
The mezzanine finance provided by Argyll Property Partners fills the funding gap between a developer’s own equity and the senior debt available from a bank, ensuring that developments like this are able to achieve sufficient capital to begin, and maintain sufficient liquidity throughout in order to be completed. Argyll was the first mezzanine developer to provide loans with simple interest and no compounding, introducing this approach more than fifteen years ago.
Based in London, Argyll lends across the UK, including the outer suburbs of London, as well as projects in the wider regions including Edinburgh, Nottinghamshire, Yorkshire, Cheshire, the Midlands, Bristol, Essex and Devon.