District & County Investments (DCI) has successfully delivered a £2.47m net development facility to support the refurbishment and conversion of a mixed-use scheme in Stoke Newington, London
The 18-month facility was structured on a flexible basis to support both the delivery and exit of the mixed-use scheme, enabling the borrower to advance a fundamentally strong project that had previously stalled after another lender withdrew because of the building’s Grade II-listed status.
The scheme presented clear underlying fundamentals but required a more considered approach to underwriting, given the complexities associated with listed building works and programme delivery.
Extra considerations needed for the mixed-use scheme in Stoke Newington
DCI adopted a pragmatic, experience-led approach to the Stoke Newington mixed-use scheme, focusing on the borrower’s proven track record in delivering similar refurbishment and conversion projects, alongside a detailed assessment of the asset itself.
This included a comprehensive review of listed building considerations, construction costs, and programme, supported by input from the Monitoring Surveyor.
This deeper level of analysis enabled DCI to gain conviction in the scheme, even though more criteria-driven lenders had been unable to proceed.
Working in practice, not just on paper
The facility was structured at below 60% LTGDV, providing conservative leverage and strong downside protection, while maintaining flexibility around exit. The primary strategy is to refinance upon completion, with the ability to deleverage through unit sales if required.
The transaction was delivered at pace, providing certainty on a time-sensitive opportunity and allowing the borrower to move forward without further delay.
The deal highlights DCI’s ability to look beyond complexity and support well-understood mixed-use projects that may fall outside traditional lending parameters.
Michael Clifford, Commercial Director at District & County Investments, explained: “This was a scheme where the fundamentals were clear, but it had fallen out of another lender’s process due to the listed building.
“By taking a more pragmatic view and really understanding both the asset and the borrower’s experience, we were able to move quickly and structure a facility that works in practice, not just on paper.”
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