CASE STUDY
Hainault
Type: Senior Loan Acquisition
Loan Amount: £5.7m
Term: 12 months
Location: Hainault, London Borough of Redbridge
At a glance
GRE Capital agreed a 12 month senior loan of £5.72m, secured by a first charge over a
vacant 1970s office building of 47,512 sq ft at Capital Gate, 320 New North Road. The
business plan is to obtain full planning to demolish the existing building and deliver about
42 townhouses and an affordable block of 32 flats. The site is designated as an opportunity
site in the Redbridge Local Plan with a strong permitted development fall back to convert to
residential flats.
The brief
The borrower, Medina Capital Investments, exchanged to buy the freehold for £6.0m and
required certainty of funding while pursuing planning. The site benefits from excellent
transport links with Hainault Underground Station 0.3 miles away and strong road
connectivity to the M11, M25, A12 and North Circular. Equity support included Pathway
Homes with experienced planning input from a specialist adviser.
The GRE solution
GRE Capital provided a tailored 12 month senior facility with retained interest to support
the acquisition and the planning timetable. Conditions included a Red Book valuation at
£6.0m, satisfactory planning advice and standard due diligence. Our structure recognised
both the positive pre application feedback and the permitted development alternative
which would still allow repayment of the facility.
The outcome
The facility enabled acquisition and a clear pathway to planning. On the full planning case
the residual land value indicates coverage of the GRE loan in the region of 1.80 times, with
the permitted development case indicating around 1.62 times coverage. Our conviction in
the planning potential and the downside protection meant we could lend where others
might not.
NATIONWIDE PORTFOLIO
Type:
Amount:
£17.3m
Senior Loan
Purpose:
Term:
Acquisition
12 Months
Location:
Portfolio across London & South East & North East of England
GRE Capital, alongside partners, agreed a 12 month senior facility of £17.34m secured by a first ranking charge over a granular portfolio of 76 properties..
