Case Study: Camden Residential Development
How we arranged development finance for a residential conversion project in Camden, Kingston. From initial enquiry to completion in 18 months.
This case study illustrates how Construction Capital arranged development finance for a residential conversion project in Camden, Kingston, where average property values are £1050 per square foot.
The Project
A developer with three completed projects approached us to fund a high-specification residential conversion of a period building in Camden.
Key Numbers
| Metric | Value | |--------|-------| | Location | Camden, Kingston | | Project Type | Luxury Residential Conversion | | GDV | £8,400K | | Build Period | 18 months | | Local Rental Yield | 3.8% | | Planning Approval Rate | 68% |
The Challenge
The developer needed to move quickly — the vendor had set a 6-week exchange deadline. Traditional bank funding would have taken 8-12 weeks, risking the loss of the site. Additionally, the developer wanted to maximise leverage to preserve capital for a second project in the pipeline.
Our Solution
We structured a combined senior debt and mezzanine facility:
The key was finding a senior lender comfortable with Camden's market dynamics. Kingston's 68% planning approval rate and 45 active development sites gave lenders confidence in the local market.
The Timeline
The Outcome
The project completed on time and within budget at 18 months. All units sold within 3 months of practical completion at or above the projected GDV.
The developer's return on equity exceeded 25%, significantly enhanced by the leverage structure we arranged. They have since returned to fund two further Kingston projects through our panel.
Lessons for Kingston Developers
1. Speed matters — Having a broker with established lender relationships cuts weeks off the process 2. Leverage enhances returns — Combining senior and mezzanine finance significantly improved the developer's ROE 3. Local knowledge counts — Understanding Kingston's planning environment and market values helped secure competitive terms 4. Exit strategy flexibility — With 3.8% rental yields in Kingston, developers have the option to sell or hold
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Case study arranged by Construction Capital. Details have been adjusted to protect client confidentiality. Rates and terms are indicative.
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