Sheen Lane Developments has secured a £44.5m loan from Ask Partners and OakNorth Bank to fund the acquisition and refurbishment of a former House of Fraser department store in Richmond, west London.
The developer bought the freehold for the 0.5-acre site, which has a 61,000 sq ft former House of Fraser department store, for £28m. It also includes further adjacent retail space along Paved Court, making a total of 75,528 sq ft.
Acquired with vacant possession, the site holds a prominent high street position and has planning consent in place for extensive refurbishment to create a mixed-use retail and office development.
The 30-month loan facility has been provided on a 65% LTGDV.
The developer seeks to deliver a landmark mixed-use commercial scheme and will submit plans to the local authority to change the consented use to class E, broadening the tenant mix of the scheme to include a health club and restaurants.
Martin Tynan, director at Sheen Lane Developments, said: “This building is of great importance to the vitality of Richmond town centre and we have a great tenant line-up looking to take occupation in 2023.
“We look forward to working with the local authority to realise the potential of this building to reinvigorate this end of the high street and retain Richmond’s competitiveness as a commercial and leisure destination.
Elliot Blatt, investment manager at Ask, said: “From a finance perspective, we were very happy to work with Sheen Lane. The company has an excellent reputation and they have a strong business plan and well-thought strategy for this scheme. I believe their scheme will make a great contribution to the public realm.”
Hemesh Patel, director of property finance at OakNorth Bank, said: “The site in Richmond has excellent prospects and we look forward to watching the refurbishments take shape moving forward.”
Jim Remfry, co-founder of Clifton, which advised the buyer on the deal, said: “The former House of Fraser store is one of Richmond-upon-Thames’ most recognisable buildings, fronting onto the prime retail pitch and with large open floorplates adaptable for a range of uses.”
Remfry added that the buyer aims to “curate a new leisure, wellbeing and business space offer”.
Clifton has been retained by Sheen Lane Developments to advise on leasing and the future asset management strategy.
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