Urban regeneration and property investment specialist, United Properties London and Gold Wynn Group has acquired The Northern and Shell Tower in the Isle of Dogs.
The deal was made possible through a £21.5m six-month senior debt facility provided by the structured finance division of Topland Group, one of the UK’s largest privately owned investment groups.
The Canary Wharf-neighbouring office building was recently given planning permission to be transformed into a 209-unit residential development with a GDV of £85m. The facility provided by Topland will enable the borrower to mobilise quickly and commence early work on site, with completion set for Q3 2024.
United Properties London and Gold Wynn Group have purchased the 61,000 sqft asset as part of plans to expand its build to rent portfolio to 1,000 units by 2024.
The funding forms part of Topland’s commitment to support investment in high-profile Central London assets. The Group is currently redeveloping 140,000 sqft of Grade A office space as part of its Verdant scheme in Farringdon, which it has pre-let to social media platform TikTok.
Sol Zakay, chairman and CEO of Topland Group, said: “The London residential lettings market continues to show positive levels of activity despite the challenges that the current economic climate presents. Our structured finance division is well positioned to support our clients through acquisitions that require flexibility and a streamlined route to credit. We’re pleased to have been able to provide funding solutions to a range of new projects as we look to further grow our loan book throughout 2023.”
Ben Friedland, principle at Gold Wynn, said: “With more and more workers returning to London post-Covid, demand for rental stock continues to outstrip supply. The opportunity to purchase an asset with existing planning permission was an attractive way to continue expanding our Build-to-Rent portfolio.
“The structured deal provided by Topland was pivotal in completing the acquisition within tight timeframes and will allow us to swiftly start preliminary works on site.”