Cheyne Capital and Crosstree Real Estate Partners are providing 拢120m (鈧�140m) of finance for a central London residential scheme.
The two lenders are finacing the development of 25 flats at Harcourt House in Cavendish Square by Harcourt Investments.
Cheyne Capital, which financed 鈥檚 CityPoint tower with Morgan Stanley , is providing an 拢85m senior loan to Harcourt, while Crosstree has granted a 拢35m mezzanine loan.
Arron Taggart, director at Cheyne Capital, said borrowers in the UK are looking increasingly to flexible capital and tailored funding solutions for real estate projects, 鈥減articularly for those that are large and complex鈥�.
鈥淔or us, this development is an opportunity to work in partnership with high-quality counterparties on a London project in a good location with strong risk-adjusted characteristics.鈥�
Peter Macallan, head of structured development finance at Knight Frank Finance, which acted as financing agent, said there were 鈥渕any speculative high-value residential development schemes鈥� in the prime central London residential market unable to secure funding.
He said: 鈥淭his deal underlines that there is still funding available for transactions with strong fundamentals from alternative non-bank sources.鈥�
The development is being managed for Harcourt Investments by Centreland, which has planning permission for the scheme after the property was acquired for 拢75m in late 2013.
