Whitehall Capital Fund (‘Whitehall Capital’ or ‘the Company’), the specialist commercial and residential property bridge financing fund, is delighted to announce that it has completed a £2.7m loan for a mixed-use residential and commercial development, valued at £4.5m, in Plymouth, Devon.
The diversified scheme will offer student housing, office and retail space covering more than 33,500 square feet, thereby de-risking the development and tapping into the current market demand in Plymouth. Given the Fund is working with an experienced developer with a proven track record, the loan’s risk profile has been deemed moderate/low. The loan has a tenor of 12 months and covenants include that the Loan to Value (‘LTV’) ratio must not exceed 70%.
Whitehall Capital, part of the Amram Capital Wealth Management group, issues short term loans (normally 3 to 12 months) that are primarily secured against residential UK property although properties may be residential, commercial, mixed-use or land with planning permission. It ideally targets loans secured against properties valued at between £1m and £10m. The majority of loans are in the £1-5m range. The fund only lends against properties in the UK and has a conscious bias towards big cities – London, Manchester, Birmingham etc. Its current focus area is outside central London but within the M25, but it is actively looking to be a more national lender of choice for its target market.
The loan target net return to investors is between 10% to 12% per annum.
Since its establishment in March 2017, the Fund has delivered a net return of 18.15% on loans, significantly outperforming many stock markets and hedge funds.
It recorded a return of 2.63% in the April-June period this year – its best quarterly performance since it was established – and posted a strong first half to this year, being almost fully invested for most of the period and delivering a return of 5.2%. Its performance is particularly satisfying in light of the property market slowdown and overall low transaction volumes.
Christopher Khoi, pictured, Partner at Whitehall Capital, said:
“We are thrilled to have partnered with this developer on such an exciting new project and to be expanding our business footprint across the country. This project benefits from a fantastic location in the heart of the city and just minutes away from the main university campus, railway station and Plymouth’s prime retail area. The mixed-use property will improve both the student accommodation and office space offering in the city as well as complementing its vibrant shopping district.”