INTELLIGENT PROPERTY FINANCE
In March 2024, Imperial Blue, a prominent development finance lender, extended a senior development loan of £10.56 million to support the construction of 53 residential units in Milton Keynes. This financial assistance comes with an 18-month term, aiming for practical completion within the first 12 months, with the first phase finished by June 2024. The site had already been acquired, with strip out already underway.
The primary purpose of this loan was to repay an existing financial arrangement and subsequently cover 100% of the remaining construction expenses. The property in question enjoys a perfect location within Milton Keynes, offering convenient commuting access to London with the train station a short walk away This makes it an attractive option for commuters seeking affordable housing solutions.
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The asset is currently existing offices over ground, first and second floors, that have been fully stripped out and development works commenced.
The Property has the benefit of (1) permitted development rights for the conversion of the offices to 25 units and (2) planning permission for the new build of two additional floors on top of the existing office building over the same footprint. The Borrower acquired the site in March 2023, and since has worked through the various planning and consent matters. The Borrower has already started works on the site, stripping out the offices.
The planning permission was granted in two stages:
Permitted development rights: Prior Approval has been granted to convert the building under permitted development rights to form 25 self- contained residential flats.
New build application: Prior Approval has been granted to convert the building under permitted development rights to form 25 self- contained residential flats.
There will be a total of 27 parking spaces, available to purchase by separate negotiation. Currently taking account of the Offices and disregarding the serviced office partitioning, the offices provide an area of 19,832 sq ft (1,824 sq m). The proposed 53 residential units will provide an aggregate internal area of (2,903.30 sqm) 31,251 sq ft.
Location:
Milton Keynes is designated as a “new town” rather than a traditional city. It was planned and developed in the 1960s as a purpose-built urban area to alleviate housing congestion in London. Despite not having official city status, Milton Keynes is often referred to as a city due to its size, population, and urban infrastructure. It has a large population, extensive amenities, and functions as a significant urban centre within the United Kingdom.
Proximity to Major Cities:
Milton Keynes is located approximately 50 miles (80 km) northwest of London, making it within commutable distance for those working in the capital. It is also approximately 47 miles (76 km) southeast of Birmingham, a major city in the West Midlands.
LEADING THE FIELD
``We are very pleased to have completed this loan for one of the UK's leading PD developers. There is a tight deadline to complete the PD part of the works (c. 50% of the project) but we have confidence in their ability to deliver and due to the private nature of our funding are able to be flexible in this sort of situation. PD remains an attractive target market for Imperial Blue.``
Tom Harries – Director, Imperial Blue
IMPERIAL BLUE
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