London, 26 March 2019
Fortwell Capital, principal lender to developers and investors within the UK real estate sector, has made its third major loan in as many weeks, with the completion of a £45 million acquisition finance facility to Avanton.
The loan will enable the purchase of Ruby Triangle, a mixed-use development scheme on Old Kent Road in London, SE15. Planning consent was secured by Avanton in October 2018 for 1,152 residential units, of which 40% will be allocated for affordable housing, the project spans 1.4 hectares and consists of two towers of 48 and 40 storeys, alongside a church, sporting facilities, car parking and commercial space.
The loan is the second Fortwell Capital has extended to Avanton, and the third major facility written by the firm in the past month, bringing the total capital deployed by the lender since the end of February to more than £131 million.
The financing was arranged by Link Asset Services and is the second transaction concluded with Fortwell Capital so far this year, for a total of close to £100 million of debt.
Dan Smith, executive director of Fortwell Capital, said: “Ruby Triangle is a first-rate scheme and it is great to once again be supporting Avanton in bringing forward a development that will deliver much needed homes for London. Fortwell Capital has a significant appetite for supporting developers and investors on larger, more-complex real estate financing opportunities – especially since the £400 million capital injection it received from Cain International at the end of 2018 – and the firm’s origination strategy continues to involve projects such as Ruby Triangle.”
Omer Weinberger, Managing Director of Avanton comments: “Londoners know well the pressure caused by a housing shortage in the city. This development, with over a thousand new homes, 40% of which will be allocated as affordable housing, helps ease that pressure. Bringing more housing, services, and jobs to the local area, the Ruby Triangle development will be truly regenerative. It will help make the Old Kent Road a vibrant location for years to come. The transaction was not straightforward and involved the acquisition on multiple land interests along with numerous stakeholders. Fortwell’s commercial and pragmatic approach was key in ensuring the funding was available to complete the purchase”
James Wright, head of real estate finance at Link Asset Services comments: “This deal puts a solid foundation under a major development on the Old Kent Road. This is an impressive scheme that will bring significant benefits to the local community. We’re proud to play a role in advancing the project and look forward to seeing it join the skyline of South London.”