Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Hesper House, South London

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Investment Summary

  • OVERVIEW – CapitalRise is providing a bridging loan to the Borrower who owns the Property known as Hesper House, Wells Park Road, London, which has the benefit of planning permission to build 15 luxury flats. The borrower owns the site unencumbered and the loan will provide equity release to reimburse some of the acquisition and planning costs he has incurred to date. The bridging loan will allow the Borrower enough time to prepare for the development works, which will be financed by a further development loan facility with either CapitalRise or another lender. At this point, investors in this loan will be repaid, and if the Borrower opts to refinance with CapitalRise then investors will be offered the opportunity to invest in the development loan.  
  • TERM – The estimated term for this investment is 8 -12 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 12 months from the end of the estimated term up until the hard stop date (May 2025).
  • PLAN – The Borrower already owns the site unencumbered and the loan will provide equity release to reimburse their initial equity investment enabling them to invest in existing and future projects. The Borrower achieved planning permission in February 2023 to demolish the existing site and allow for the construction of 15 Flats, including 6 off-street Parking Spaces. 
  • LOCATION – The Property is located in Upper Sydenham in the London Borough of Lewisham. The Property lies between Dulwich and Crystal Palace and is well served for local shops, cafés and other amenities. A number of outdoor public spaces are in close proximity, including Sydenham Wells Park, Crystal Palace Park and Norwood Park. 
  • PROPERTY – The existing freehold site consists of a single detached four-bedroom house on the site with a garage and rear garden. The Borrower intends to demolish the existing dwelling and construct the 15 flats as mentioned above in-line with the approved planning permission. During the Bridge loan period they intend to prepare the site and professional team ready for development work to begin..
  • THE BORROWER – The Borrower is a Developer called the Edition Group who operates as a consortium of architect-led companies within a single organisation that acquires, designs, and builds new residential projects in London and the South-East. They have a strong reputation in South East London and have a completed and sold a scheme on the same road. The ultimate beneficial owner (UBO) has had their own Architectural firm for 20 years and one of there first projects won  RIBA prize for London’s best housing. The Borrower is known to CapitalRise having worked with them on a previous project. This is the second loan CapitalRise has provided to the Borrower/Developer. The first loan CapitalRise provided was launched earlier this year for a development project, located 0.5 miles away on Sydenham Hill. The project continues to perform well and CapitalRise's experience of the Borrower is very positive. 
  • YOUR INVESTMENT – CapitalRise investors will benefit from a First Legal Charge over the property, a Personal Guarantee limited to 25% of the total advance plus cost overruns guarantee, and First Ranking Debenture over the Borrower. Investors will always be first in line to be repaid when a payment is made against the loan. In the event of a forced sale of the Property, CapitalRise investors would recover their investment first and if the Borrower is unable to repay the loan, CapitalRise will seek to force the sale of the Property on behalf of investors. If sales are achieved the value would need to be less than 64% of the anticipated market value before your invested capital and accrued return are at risk. 
  • EXIT PLAN – The Borrower plans to exit the Bridge Loan Facility provided by CapitalRise via a Development Loan Facility either provided by CapitalRise or another lender.