A London lender has provided £5.5 million to fund the redevelopment of a Belgravia townhouse into a luxury family home. The loan, issued by CapitalRise, will cover the acquisition and conversion of a six-floor property on Chapel Street that has sat unoccupied and unmaintained for several years.
The 3,500-square-foot townhouse will undergo a full transformation. The redevelopment plan includes a basement extension and the replacement of the existing conservatory with a single-storey extension, bringing the property to seven levels once complete.
Financing a complex deal under tight deadlines
The transaction presented logistical and financial challenges that required a tailored approach. The deal involved a simultaneous share purchase agreement, which demanded coordination between the lender, the borrower, legal teams, and surveyors to meet completion deadlines. CapitalRise described the project as one of its more complex transactions, citing the need to manage evolving circumstances while maintaining certainty of execution.
Raf Chowdhury, lending director at CapitalRise, said: “This was one of our more complex transactions and is a great example of CapitalRise’s ability to handle challenging situations whilst maintaining certainty of execution for our borrowers. The deal required us to manage evolving circumstances, a simultaneous share purchase and tight completion deadlines, all while delivering a structure that worked for every party involved.”
The finished property will include air conditioning throughout, a gym and cinema area, video entry systems, and interior finishes designed for the residential market.
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Kristian Hoy, head of structured finance at Saxbury, the advisory firm that introduced the deal, said: “Throughout the process, CapitalRise demonstrated an exceptionally collaborative and solutions-focused approach, working closely with all parties to handle evolving circumstances and maintain momentum towards completion.”
London’s housing supply pressures drive niche lending
The Chapel Street project is among several complex development finance transactions to complete in prime central London this year. Lenders continue to back redevelopment projects requiring technical structuring and tight timelines. The transaction comes at a time when new build housing listings have fallen to their lowest level since 2017, indicating continued pressure on residential supply in the capital.
The development finance market has shown resilience despite broader challenges in the property sector. Industry figures have called for policy reform to address accessibility issues affecting potential homebuyers.
The Belgravia townhouse is expected to complete its redevelopment in the coming months, adding to the housing stock in one of London’s most established residential areas.
