The capital will be used to develop six new luxury residential units in Hampstead, including two two-bedroom flats, two two-bedroom duplexes and two three-bedroom duplexes. The area is an affluent region of North West London, and is less than a 30-minute drive to Heathrow Airport.
The deal comes as the latest analysis from Savills reveals that demand for homes with more quality living space and outdoor areas has been boosted as a result of COVID-19, and more of the capital’s workforce expecting to at least partially work from home in the future.
Hampstead Homes Southern Ltd, commented on the transaction: “As a result of COVID-19, we’ve experienced first-hand, banks retrenching from the market and pulling back from lending, we were grateful when the team at OakNorth Bank was willing to help, so we’re glad we could get this over the line quickly. We hope to work with OakNorth Bank again soon on future developments.”
Priya Chauhan, Debt Finance Director at OakNorth Bank, added: “London’s high-end residential property market has always been an attractive investment, but is seeing a further boost in demand as a result of more flexible working from COVID-19 and the removal of stamp duty. We were delighted to support the team at Hampstead Homes – they have successfully completed many projects across London and the South East, so have a clear view as to what buyers are looking for. We look forward to seeing how the project evolves and look forward to working with them again.”
Notes to editors
About the Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m. The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months. The scheme is due to close for new applications on 31 January 2021.
About the Coronavirus Large Business Interruption Loan Scheme (CLBILS)
CLBILS is a demand-led scheme offering lending to smaller businesses with turnover of more than £45m. The maximum amount available through CLBILS to a borrower and its group is £200m. Term loans and revolving credit facilities over £50m are offered by CLBILS lenders which have secured additional accreditation. The maximum size for invoice finance and asset finance facilities is £50m. Borrowers are able to spread repayments from three months to three years. The scheme is due to close for new applications on 31 January 2021.
About OakNorth Bank plc
OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £50m) to fast-growth businesses and established property developers / investors. It has debt finance teams in London, Manchester, Bristol, Birmingham, Leeds and East Anglia.
Since its launch, the bank has:
• Lent over £4.6bn, directly helping with the creation of 16,000 new homes and almost 20,000 new jobs in the UK;
• Raised deposits from c.160,000 savers;
• Supported over 750 businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.