OakNorth Bank has provided a £3.4m property development finance facility for a new aparthtotel in Oval, London.
This will be a joint venture between MELT Homes and Espalier Ventures who will acquire a mixed-use property in 68-86 Clapham Road.
In its place will be an aparthotel with between 120-175 units, subject to receiving planning permission.
The site is located within walking distance of a range of Zone 1 underground stations, Oval, Stockwell and Vauxhall.
Evan Maindonald, director at MELT Homes said: “We are very excited about this project – the site is an excellent location and has so much potential, especially given how popular the area is with tourists and cricket fans! Whenever there is a need to submit planning permission, speed is of the essence, which is why we felt OakNorth Bank would be the right partner for this transaction.
“Hemesh and the team have a thorough understanding of the market, as well as a wealth of experience working with joint venture structures, so were able to design a facility that met our needs in the time frame we needed it,” he added.
MELT Homes has built over 100 properties in London, Gloucestershire and Kent over the past 17 years accumulating a portfolio of over 50 residential and commercial properties.
Their current projects are valued at more than £60m, including a 19-unit residential development in Gloucester.
Espalier Ventures is a private family investment office with a growing portfolio of businesses and investments in international higher education, property, social impact and leisure.
Rick Gibbs of Espalier Ventures said: “We are delighted to be involved in this deal with MELT and OakNorth. It is our fifth deal in the last six months and is a good fit for us, given that we are looking to increase our exposure to Real Estate investment with a particular focus on Aparthotel, Co-Living and selected areas of Prime Central London.”
Hemesh Patel, property finance director at OakNorth Bank said: “Given the importance of tourism to London’s economy, the city needs to ensure that it is able to meet the demands of tourists wanting to visit the Capital. The most important aspect of this is providing suitable accommodation, but unfortunately the supply of serviced rooms and aparthotels is tight, and the cost of accommodation is expensive.
“With England winning the Cricket World Cup earlier this year, both Lord’s and the Kia Oval expect to see a boom in tourism, and as such an increased need for accommodation. The team have a wealth of experience and in combining resources, will be able to bring some much needed new rooms to the Oval area,” he added.