Sloane Gardens, Chelsea

Investment Summary

OVERVIEW – CapitalRise is providing a loan that will fund the refinancing and development of three flats in Sloane Gardens (referred to as "the Properties”), which is located in the Prime Central London neighbourhood of Chelsea to the south of Sloane Square. In this opportunity, CapitalRise investors will be part-funding the facility alongside an Institutional Funding Partner.  

TERM – The estimated term for this investment is 15-21 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 6 months until the hard stop date (April 2025). 

PLAN – The Borrower will use this phase of funding to refinance the existing debt on the Properties. The facility will also provide finance for the later development and refurbishment of the scheme. CapitalRise investors will fund the refinancing section of the loan alongside the Institutional Funding Partner. The Institutional Funding Partner will then fund all of the subsequent construction costs for the development. The proposed scheme is to convert the current building, which consists of two apartments, into three apartments. Full planning permission has been granted. The intention is to create 1x one-bedroom and 2x two-bedroom apartments, one of which will have a penthouse terrace. The Properties are currently on a freehold title and, upon completion, there will be leasehold titles for each of the new flats. The Borrower is expected to hold the Properties as part of their portfolio and will aim to refinance them onto a long-term financing solution.  

LOCATION – The Properties are located on Sloane Gardens, which runs southwards from Sloane Square where the tube station serves the District and Circle lines. The Properties are situated in the Prime Central London location of Chelsea but border Belgravia and Knightsbridge. High-end shops and amenities can be found around Sloane Square, Sloane Street, King’s Road and Elizabeth Street. The surrounding area is mainly a private residential area of similar redbrick terraced houses, most of which have been converted to flats.  

PROPERTIES – The Properties are situated within a 6-storey, mid-terrace, late-Victorian redbrick house that was converted to 2 flats with lift access. The new scheme will convert these two apartments into three, two of which will have lift access. Currently, the building is not habitable as development was previously started but not finished.  

THE BORROWER – The Borrower is a UHNW individual who had a successful track record in his early career of starting, seeding and listing biotechnology companies on an international level. At the beginning of 2012, the Borrower founded a personal family office that focuses exclusively on buying and developing luxury real estate in the cities of London, Milan, Monte Carlo and Paris.

EXIT PLAN – The Borrower's primary intention is to refinance onto a buy-to-let loan upon completion and the Properties will be held as part of the Borrower's portfolio.  

VALUATION – Knight Frank has provided an independent Red Book market valuation (October 2022) with the following Gross Development Value (GDV) on a separate lot basis: £9,750,000 (£2,631 psf). CapitalRise Investor’s gross breakeven is £1,842 psf.