Developer secures £5m loan to complete first phase of 69-unit residential scheme
A £5m development loan will enable Liverpool-based ethical property developer, Integritas Property Group (IPG), to complete the first phase of development at its luxury residential development at Bastion Point, Liverpool.
The funding, from StreamBank, has been brokered by GapBridge Capital.
Bastion Point comprises 69 one- and two-bedroom contemporary high specification apartments set over seven floors.
Located in Vauxhall, a short distance from Liverpool’s city centre, Bastion Point comprises a total of 240 one- and two-bedroom contemporary high specification apartments.
Designed by North West-based Snow Architects, the development will offer residents a landscaped communal garden, bicycle storage, and a dedicated concierge, plugging the gap for much needed high quality rental properties in the area.
The development will include ground floor space for retail units that will be available for use as cafes, shops and other leisure facilities.
All 69 units from the first phase of the development have already been purchased leasehold, with rents expected to yield 7.5%, and short term lettings investors yielding upwards of 10% per annum.
Mitchell Walsh, managing director of IPG, said: “We are thrilled to have secured this development loan from Streambank. It enables IPG to swiftly complete phase one of the project, and it also represents the first loan of its kind for IPG from a registered bank.
Mitchell Walsh
“We now look forward to delivering all units in phase one, which have already sold out, so we can play our part in the regeneration of this area of Liverpool by providing well needed quality housing.”
He added: “As an ethical developer, IPG has a long term commitment to helping grow sustainable communities in the North West, and we believe Bastion Point will provide a wonderful living experience for Liverpool’s residents.”
Liverpool experienced year-on-year growth of 8.6% in property prices between 2021 and 2022, with the average property price currently sitting at £215,794, with flats fetching more than £141,424.
This strong price growth is expected to continue relative to the context of the wider UK property market, making the development well positioned to generate strong returns from investments in Liverpool’s property market.
James Evans, Business Development Manager at StreamBank, commented: “We’re delighted with the progress of this development – this was an exciting deal for us that ticked a lot of boxes.
“IPG presented a complex, phased scheme that demanded a bespoke funding solution to achieve the client’s vision. Getting to the heart of the project quickly, we understood the unique needs of the project and agreed a flexible funding package to support the development. I’m looking forward to continuing the relationship and seeing the scheme progress through the build.”
Mark Ragan, GapBridge Capital UK country manager, said: “In a challenging funding market, we are very pleased to get the project under way and it’s a testament to the hard work of the team at IPG in delivering Streambank a high quality project.”
