Topland has lent more than £100m in the third quarter of this year, buoyed by strong demand for residential funding and joint venture equity.
Sol Zakay’s group has just provided £3m of equity for a prime residential joint venture with a gross development value in excess of £20m and is on track this year to exceed its £200m allocation to property lending forecast in February.
The firm, which provides equity to developers, enabling them to share the capital burden and obtain senior debt on lower rates while reducing exposure to higher-priced mezzanine debt, also participates in bridging loans, senior development loans and mezzanine finance.
In the third quarter this year it provided a £36m bridging loan for a developer to get planning on a five-acre site on exclusive “billionaires’ row” Bishops Avenue, N2; a £10m mezzanine loan to developer Nick Knight to buy an adjoining mews house to complete a 10,000 sq ft townhouse with an estimated GDV of £50m at Chester Square, SW1; and a £16m senior development loan to luxury residential developer Fenton Whelan to buy a block of flats earmarked for a £40m residential scheme at nearby Chesham Street, SW1.
Lending has become Topland’s second core business after property investment. In less than three years it has completed close to 50 loans worth more than £300m.
The established book is now maturing with a number of redemptions having been made, with more set to be made.
bridget.oconnell@estatesgazette.com
