The Scheme
The scheme comprises eight residential units and two commercial units on a high street site in Mitcham, an established South London suburb. The development forms part of the ongoing regeneration of the local area, delivering much-needed new homes alongside modern commercial space to support the vitality of the high street.
The residential units are targeted at first-time buyers, young professionals and investors — reflecting the sustained demand for well-located homes in established urban locations that benefit from active regeneration programmes. The commercial element will provide modern workspace to support local business activity and contribute to the long-term viability of the high street.
The Challenge
The transaction required a structured and flexible approach to accommodate a number of project-specific complexities:
• Planning gain delay: The project experienced a delay arising from planning gain considerations, requiring the funding structure to be adapted to reflect the revised timeline and ensure the borrower retained certainty throughout.
• Contractor engagement challenges: Early-stage difficulties with contractor engagement created additional complexity, requiring the lender and adviser to work closely with the borrower to navigate these practical delivery issues.
• Evolving project requirements: As is typical with SME development schemes of this nature, the project requirements evolved as it progressed. A lender with the capability and willingness to adapt its structure in response to those changes was essential to keeping the development on track.
Deal Snapshot
Lender
Challenger Bank
Facility Type
Development Finance
Facility Amount
£2,400,000
Pricing
9% PA
Location
South London
Scheme Type
Mixed-Use — Residential & Commercial
Residential Units
8 units
Commercial Units
2 units
Target Market
First-time buyers, young professionals and investors
P10's Role
Drawing on a longstanding relationship with the borrower, P10 identified one of their banking partners as the most suitable lender for the scheme — a lender able to take a considered view on both the project's fundamentals and its specific delivery challenges.
The key part of the transaction was the way the facility was structured. We were able to maximise the clients equity by working with the bank to deliver on a structure that worked for the clients current holdings whilst also mitigating the lender risk.
Outcome & Impact
The successful completion of this transaction will deliver eight new homes to the South London market alongside two modern commercial units, contributing directly to the regeneration of the local high street. The development provides a tangible example of how specialist development finance, delivered with flexibility and a collaborative mindset, can unlock schemes that might otherwise stall in the face of practical delivery challenges.
For P10, the deal reinforces our ability to identify the right lending partner for complex transactions and to manage those relationships through to a successful conclusion — regardless of the challenges that arise during delivery.
