Magnet Capital has completed a £1,009,475 development finance loan for the construction of a two-bedroom property located behind King’s Road in Chelsea, SW10. The project, which took over a decade to secure planning permission, has now been redeemed.
Specialist finance advisory firm Karis Capital arranged the development finance package and managed legal proceedings throughout the transaction. The site is located within the Royal Borough of Kensington and Chelsea’s Sloane/Stanley Conservation Area, which added regulatory complexity to the build.
Construction constraints
The completed property comprises a single-storey house with basement, measuring just over 1,000 square feet. The building features zinc and copper-bronze cladding, American white oak timber detailing, a sunken courtyard garden and a flat green roof.
The development presented significant logistical challenges due to the absence of vehicular access. Construction materials and equipment were transported through a narrow pedestrian passageway shared with commercial and residential tenants. All items, including reinforcement steel, concrete and machinery, were moved manually using wheelbarrows, trolleys and specialist micro-equipment.
Legal and planning complexity
The project required 21 Party Wall Awards covering neighbouring freeholders, leaseholders, studios, retail units and a school. Each award involved negotiation of security of expenses, engineering details, drainage design and fire escape strategy.
The site’s planning history extends back to 2013. A previous permission granted on appeal in 2014 lapsed, and two subsequent applications were withdrawn before final approval was granted in September 2022. Similar complexities have been observed across the sector, as housing supply remains steady while buyers navigate planning and regulatory challenges.
Ashley Ilsen, co-chief executive at Magnet Capital, noted the operational challenges: “No vehicular access, 21 Party Wall Awards, a planning history going back to 2013 and a basement that cost more than half the entire build budget to construct.”
Luke Casey of Karis Capital stated: “From the outset, Magnet Capital’s team understood the complexity and never wavered in their commitment to getting it done.”
Development finance market
The transaction reflects the specialist nature of development finance in conservation areas with restricted access. As the property sector adapts to regulatory changes, including new digital reporting requirements for landlords, lenders continue to underwrite complex urban development projects.
The loan has been redeemed on schedule, with the property now complete.
