Delancey agrees £24.5m loan for west London PBSA scheme

Delancey has completed a £24.5m senior secured facility through its dedicated credit strategy to refinance a development site in Acton, west London, owned by Hurlington Capital and The V Fund. In May 2024, Hurlington Capital secured planning consent for a 429-bed purpose-built student accommodation building and a 95-home affordable residential scheme to be delivered on two plots. The existing sites hosts 44,000 sq ft of under-utilised commercial and light industrial buildings, which will be reprovided in the scheme.  The site is located within the wider Bollo Lane mixed-use masterplan, which also includes a housing project being delivered by a JV between Transport for London and Barratt Homes. The completed masterplan will provide new homes, workspace and retail close to Chiswick High Street.   The student accommodation element will be delivered for the 2028/29 academic year. It will serve to meet an undersupply in the local area and support nearby universities, including Imperial College, UWL and Richmond American University.  Hurlington Capital managing director Harry de Lotbiniere said: “Delancey has proven to be a reliable funding partner for this transaction thanks to its flexibility, speed and certainty of execution. This loan will replace an existing financing facility and cover pre-construction costs as we look to move forward in delivering another market-leading PBSA-led residential scheme in an area witnessing significant regeneration and investment that will be supportive of our proposed development.”  Martin Kom, director of real estate strategies at Delancey, said: ”We are very excited by the regeneration already under way in the surrounding area, with the next phase, led by TfL, expected to attract substantial inward investment and drive long-term value appreciation. We remain convicted in the London PBSA sector, which continues to be underpinned by a fundamental supply-demand imbalance.”  Delancey has been actively lending whole and mezzanine loans across different asset classes, primarily in London. Notable transactions include participating in the £235m refinancing of 280 Bishopsgate, a 275,000 sq ft grade-A, BREEAM Outstanding, fully-let office building in the City of London, and participating in a £135m refinancing of the Notting Hill Gate Estate, a 185,000 sq ft freehold estate. Image from Delancey