Bank of London and The Middle East plc (‘BLME’) has provided a £12.5 million facility towards the purchase of two new build freehold residential blocks at Red Clover Gardens, Coulsdon, Croydon for rental purposes.

The facility covered three time phases including ‘acquisition’, ‘let up’ and ‘stabilised occupancy.’ It included a generous letting up period, however, all 72 flats were let out within the first facility quarter, and as key lettings milestones were met the facility provided the client with margin reductions. The deal closed within four weeks.

The majority of units are low cost 1 and 2 bedroom flats, reflecting tenant demand. The properties are a short walk to three main line rail stations, with a journey time of just over 20 minutes to London Bridge. The majority of flats have balconies that overlook communal lawned gardens.

The high-quality design and finish resulted in the scheme being shortlisted for the International Building Project of the Year at the Irish Building and Design Awards 2024. The flats also benefit from an Energy Performance Certificate rating of B, futureproofing them for the Government’s plan to require landlords to acquire an EPC rating of C by 2030.

This was Farlane Capital’s first acquisition towards their goal of 500 private rental scheme (‘PRS’) units. Farlane intends to collectively brand the portfolio under the ‘Nara Living’ brand, and the focus will be on acquiring lower-cost, energy-efficient rental homes with strong transport links to urban centres.

Rashid Khan-Gandapur, Director, Real Estate Finance, BLME said: “We are delighted to have been able to tailor the £12.5m facility to meet Farlane’s needs for this scheme, and utilising BLME’s local market research and residential real estate experience. Our assessment of Red Clover Gardens as a strong asset is reflected in all units being occupied so quickly and we’re pleased to be helping to bring much needed supply to the market.”

Grant Livingston, Founder, Farlane Capital said: “BLME worked quickly to ensure the deal closed in four weeks. The ability to work promptly with an experienced bank partner, offering competitive finance which was tailored to the project were really important for us to be able close this transaction within a required completion timescale. The assets have been let at record speed and we look forward to adding assets to our portfolio and ensuring good quality management to achieve strong lettings.”

About Bank of London and The Middle East plc:

BLME is a Sharia’a compliant bank based in London. Led by a management team that brings together a combination of experienced international bankers and leading experts in Islamic finance, BLME’s key business areas include: Wealth Management solutions, Mortgages, Commercial Real Estate Finance, and savings products. 

BLME is authorised by the PRA and regulated by the FCA and PRA. For more information, please visit our website www.blme.com

Read BLME’s research report on GCC investment in UK commercial property here: BLME: Opening the Door

About Farlane Capital Limited:

Farlane Capital is a newly formed investment management platform that has successfully sourced equity and continues to seek new equity partners. It is focused on ‘build to rent’ and acquiring ‘private rental sector’ properties at the more affordable end of the market with proximity and good transport links to urban centres and thereby focusing on a part of the market where there is chronic undersupply.

For more information, please visit Farlane’s website: www.farlanecapital.com

Contact:
Callum Nimmo
Consultant, Luther Pendragon
BLME@luther.co.uk