CapitalRise Closes £4m Bridging Loan for Mixed-Use Redevelopment in Kensington
This article was also published in Bridging & Commercial here>
Specialist prime property finance firm CapitalRise has completed a £4 million bridging loan to support the acquisition of a commercial office site in North Kensington, London. The facility will provide the borrower with the time and flexibility to secure planning permission for a residential-led mixed-use redevelopment, marking a strategic expansion into fully-commercial assets for CapitalRise.
The site, currently comprising a two-storey office building with 27 studios and a large car park, already benefits from planning consent for a new five-storey office scheme. However, the borrower – an experienced mixed-use developer based in nearby Notting Hill – intends to reposition the asset by modifying the existing consent to deliver a residential-led scheme that includes 51 new homes and high-quality office space.
This transaction represents a notable evolution in CapitalRise’s lending strategy. While the firm remains a leading provider of development, mezzanine, and bridging funding for prime residential developments across London and the South East, it is increasingly supporting diversified real estate strategies in response to market demand.
The proposed redevelopment will retain over 12,500 sq. ft. of modern office space across the basement and ground floors, while introducing approximately 38,000 sq. ft. of new-build residential accommodation above. The design will replace outdated commercial space with modern, flexible offices more suited to modern working patterns, and also deliver much-needed housing in a well-connected part of the capital.
The borrower is a highly experienced property investment and development business, with a strong track record of managing multi-billion-pound mixed-use schemes across London. Since 2014, they have transformed over 1 million sq. ft. of underutilised space through active asset management and co-investment strategies.
The Kensington site is located on an attractive, leafy street in the Royal Borough of Kensington and Chelsea. The area is well-served by public transport, with Notting Hill Gate, Ladbroke Grove, and Westbourne Park tube stations all nearby, offering excellent connectivity across London. The surrounding neighbourhood is a vibrant mix of residential, retail, and leisure uses.
The deal was originated by Lee Francis, Head of Origination at CapitalRise (pictured), who commented: “This is a fantastic example of how CapitalRise is evolving to meet the needs of experienced developers in a changing market. While we are best known for – and continue to specialise in – prime residential lending, we’re increasingly also backing high-quality commercial and mixed-use opportunities where we see strong fundamentals.”
Lee adds: “This project will not only unlock value from an under-utilised site but also deliver much-needed homes and modern workspace in a prime London location.”
This transaction underscores CapitalRise’s commitment to flexible, bespoke lending solutions that support experienced borrowers across a range of asset classes. As the firm continues to grow, it remains focused on delivering tailored finance for high-quality developments that enhance the built environment.
