13 Lower Marsh is a 3 storey 1980s corner building providing shop and ancillary area at ground floor, 2 apartments at 1st floor level and 2 apartments at 2nd floor level. The property situated adjacent to Waterloo Station with access to West End via Westminster Bridge Road. Planning permission has been granted to develop the roof top into a penthouse apartment under planning ref. no. 16/02230/FUL LB of Lambeth.
The borrower is providing security against the retail shop, 2nd floor apartment and rooftop only. The remainder of the accommodation is held via long leases to 3rd parties and is not included in the 1st charge. The RICS valuation advises a current value of £875,000 for the secured areas. We have agreed to lend the borrower £475,000 against these areas representing 54% LTV.
This opportunity is phase 1 of a 2 phase raise and will be used to refinance his existing mortgage. He will return in about 3 months to raise phase 2 funds to undertake the works - he needs to fully design and cost the development in the interim.
The floor areas are as follows:-
Ground floor shop and ancillary area - 645sf
2nd floor apartment - 480sf
Rooftop - 750sf
The borrower will be LM13 Projects Ltd 100% owned by Oriol Cervantes. Oriol has a Masters in Business and Finance and is competent in IT Project Management (Prince 2), IT Service Management (ITIL) and Financial Consultant Skills. Through his 20+ year career he has worked in the Chemistry, Telecom, Humanitarian and Insurance fields. He has worked for international organisations including Hoechst, Clariant, BT and UNICEF.
Oriol purchased the 2nd floor apartment in 2016 and more recently bought in the freehold of the whole building. He has appointed lead consultant Corrado Accardi to run the project. Corrado is a Chartered Engineer with 16-year experience in cost and project management within the construction industry. Corrado also holds an Executive MBA from the London Business School. He has worked as contract and project manager on residential and retail projects in Italy and the UK (with values ranging from £200k to £2.5m). His projects include PM of the £50m renovation of the 450-room Intercontinental Park Lane hotel in London, the development management for the construction of the £30m 145-room Adina Hackescher Market Apartment Hotel in Berlin, the pre-contract co-ordination of the £20m Nuclear Academy in Cumbria (UK) and £130m Borgo di Villa Saletta 5* hotel development (Italy).
More recently he has founded Pizza Rossa Ltd an award-winning Italian restaurant based in City of London.
The borrower plans to let and refinance the shop or sell; let or sell the 2nd floor apartment and sell the penthouse once construction is completed.
|Minimum 6 month Loan||Full 15 month loan period|
We are delighted to be supporting this development in London. The project has been split into two phases. The borrower already owns part of this building which we are refinancing in the first phase of the project. This is a very low Loan To Value of just 54% which we are very comfortable with. The borrower is working with an experienced project manager who will deliver the second phase of the development, the 2 bedroom penthouse apartment, which already has full planning permission. This second phase will be launched on the platform in Q2 2018.
* Please see full risk statement here.
† Estimated Sales Value is more formally referred to as GDV - Gross Developed Value
‡ Interest Cover is a measure of the project's ability to cover the interest payments from profits and is calculated by dividing the Projected Return on Costs by the Total Interest incurred throughout the loan period