Harcourt Investments has secured £120m of financing from Cheyne Capital and Crosstree Real Estate Partners for the development of Harcourt House, Cavendish Square, W1.
Cheyne Capital will provide an £85m senior loan and Crosstree will provide a £35m mezzanine loan on the redevelopment of the Edwardian mansion block.
Harcourt bought the scheme in December 2013 for £75m. Since then it has gained planning 25 apartments and a 19,000 sq ft medical facility.
Knight Frank advised as financing agent. Centreland is managing the development for Harcourt.
Peter MacAllan, partner and head of structured development finance at Knight Frank Finance, said: “We are witnessing many speculative high-value residential development schemes in prime central London not being able to secure funding. This deal underlines that there is still funding available for transactions with strong fundamentals from alternative non-bank sources.”
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