Limerston Street, Chelsea

Investment Summary

• OVERVIEW – Investors in this opportunity will fund the acquisition of a two-storey house within the affluent Prime Central London residential area of Chelsea. The property occupies an end of terrace position with an appealing triple aspect towards the east, south and west.
• TERM – The estimated term for this investment is 9 -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 (March 2024).
• PLAN – The borrower will use this phase of funding to assist with the acquisition of the property. The borrower intends to apply for planning to develop the property. Please note that investors in this opportunity are only funding the initial bridging loan, and will not be funding the development.

• LOCATION – The property is located in Chelsea, a highly sought-after prime south-west London location within the boundaries of the Royal Borough of Kensington & Chelsea. It is on Limerston Street, a well-regarded residential address connecting Fulham Road and the King’s Road, the two key high streets serving Chelsea. The property has access to numerous amenities within the nearby area, and benefits from convenient access to multiple public transport links.
• PROPERTY – The property is an unmodernised two-storey house consisting of 2 bedrooms and a bathroom with a total area of 941 sq. ft. The borrower intends to apply for planning permission to demolish the current property and build a high spec luxury three-storey house consisting of 3-4 bedrooms with total area of 2,100 sq. ft.
• THE BORROWER – The borrower is a development firm called Wilben Developments. They specialise in the acquisition and redevelopment of residential property in Prime Central London. They have a strong track record, having completed projects in excess of £170 million over the last 10 years. CapitalRise provided debt to this borrower for two previous projects, both of which performed very well and were repaid in advance of the maturity date. The most recent project for which we provided funding to Wilben Developments was the Chelsea Garden Apartment, the apartment was sold within the first hour of being on the market and it sold for well over the Red Book valuation.
• EXIT PLAN – In terms of exit, the borrower intends to utilise the coming months to seek planning permission for the project and then refinance this bridging loan with a development loan from CapitalRise or another lender in order to build a 3-storey house of 2,100 sq. ft. At this point, investors in the bridging loan will be repaid.