Reditum Capital has provided a £14.3m mezzanine loan to help finance the redevelopment of the landmark Xerox campus in Uxbridge into a residential scheme that will offer Help to Buy flats.
The scheme will comprise 200 apartments aimed at first-time buyers aged 25 to 35 who are eligible for government assistance under the Help to Buy scheme and span three buildings: Bridge House, Riverview and Waterside. Bridge House is under development, while the other two buildings will become available for conversion in 2019, once Xerox vacates.
Mark Stephen, founder and managing director of Reditum Capital, said development options for the second and third buildings would be considered once Bridge House was completed within the next 12 months.
“There is potential to top up the figure if there is more development density on Waterside and Riverview with additional planning,” he said.
“With a total of 6.35 acres, there is potential for further higher density on other parts of the site and the council is open to adding a new-build or knocking down Riverview and Waterside and building one bigger structure.”
This is the fourth project Reditum has taken on under Permitted Development Rights, the other three being in Bracknell, Brentford and Bristol.
Reditum provided the mezzanine loans for all three builds while senior funding was divided between two lenders, Titlestone Structured Finance and Shawbrook Bank.
Titlestone was the senior financer for Bridge House, providing a £15.2m acquisition facility plus a £19.2m development facility to be drawn down over the course of the build.
Shawbrook provided loans for the Riverview and Waterside buildings totalling £14m. The total development value of all three buildings is £110.9m.