Precede Capital partners is pleased to announce the closing of a £76m debt funding to Great Marlborough Estates to finance the redevelopment of Empire House, a vacant office block on Chiswick High Road, into high quality housing.
The three-year whole-loan facility was originated, arranged and funded by Precede Capital in partnership with global investment firm Carlyle and funds managed by global alternative asset manager Apollo Global Management (“Apollo”).
The development will see a total of 137 homes delivered, with a range of apartment types and townhouses provided. Demolition works have already started on-site, with practical completion expected in Q4 2023.
Great Marlborough Estates, a RIBA award-winning developer, acquired the consented one-acre site from Lendlease in August last year.
Under plans approved by London Borough of Hounslow, Empire House will be revamped and extended to create 66 high-quality apartments, comprising a mix of predominantly one- and two-bedroom homes.
At Essex Place, which sits behind Chiswick High Road, 46 apartments and four townhouses will be built, with a further 21 apartments developed at the corner of Essex Place and Acton Lane.
Designed by Assael Architecture, the development will be sympathetic to the surrounding area, drawing inspiration from the red-brick buildings and greenery of Chiswick High Road, with a distinctly contemporary look.
In line with changing consumer tastes post-lockdown, each home will benefit from private outdoor space in the form of either a balcony or garden. The scheme also overlooks Turnham Green and is a short walk away from Chiswick Common.
Generous amenity space will include roof terraces and an elegant new facade being designed to complement the area’s surrounding townscape. At ground level, an additional 9,000 sq. ft. of retail and leisure space spread across two units will be created.
Upon completion, the scheme will make a significant contribution to Chiswick’s public realm, transforming the area between Chiswick Park station and Essex Place into a pedestrian-friendly zone that will benefit residents and the wider community.
Great Marlborough Estates will make use of pre-fabricated structures and components that are manufactured off-site, which will reduce the scheme’s environmental impact, minimise disruption to the local community and reduce construction time.
Grant Lipton, co-founder of Great Marlborough Estates, said: “The pandemic has made clear the need for more, better quality housing that prioritises residents’ wellbeing by guaranteeing access to outdoor green spaces, which is exactly what we are delivering at Chiswick High Road.
“The funding secured today will allow us to transform what has been a long dormant office block into a vibrant new community and local landmark that Chiswick can be proud of. We remain confident in the long-term demand for London residential assets, with the UK capital remaining one of the world’s most desirable cities to live and work in, and we anticipate strong buyer interest in our Chiswick High Road development.”
David Jerrard, Chief Credit Officer of Precede Capital, said: “We are particularly pleased to be financing this development in sub-urban London, a city which has often lacked adequate supply-side measures, and in a micro-location that continues to face a clear shortage of for-sale residential properties relative to demand. We’re looking forward to working closely with Great Marlborough Estates and our lending partners to deliver an ambitious, high-quality and responsibly built residential development in a vibrant neighbourhood.”
Great Marlborough Estates was advised by JLL, Macfarlanes, Forsters and Mutual Finance. Precede Capital was advised by Eversheds Sutherland, who also advised Carlyle and Apollo, as well as by Dalbergia and Savills.