Gordon Road, Ealing

Gordon Road in the London Borough of Ealing is a bustling residential area with a range of beautiful early 20th-century semi-detached and detached homes. Close to leafy public space, good facilities and excellent transport links into the city, the area is popular with families and young professionals alike.  

It was here that repeat VM Finance client Sunnie Matharu saw the potential for a new development. With a mixed funding package from VM Finance, Sunnie made good use of his excellent links with Ealing Council, showcasing his skills in communication and collaboration to deliver a profitable project and  high-quality new residences for the people of Ealing.  

The project details included the purchase of two adjacent detached houses on an unconsented basis but with significant potential for conversion to flats.  

After acquiring the properties, our client received planning permission for a 12-unit scheme before then submitting another application for a further 2 units (7 in each property) and additional square footage across all units. These works include extensions at the basement, ground and loft levels with a total of four duplex units over ground and basement floors.

Originally large and spacious single-unit homes, the proposed project offered strong potential returns and looked to truly utilise the site’s potential.

Taking into account that he is relatively early on in his career and doesn’t have the deep cash reserves to take on a project of this size without lending support, the tailored, customer-focused approach we delivered to Sunnie was perfect for his requirements.

The lending product was tailored to young developers and included £6.6 million through our regular lending channels. We also contributed a further £ £1.24 million in the form of an equity stake. This equity stake was made in collaboration with our associated Group company Victoria Mutual Investments Limited.  

As the project progresses, we have been able to extend the financing facility to accommodate enhanced planning gains which has improved the GDV significantly.

The power of collaboration  

Sunnie’s effective collaboration with Ealing Council resulted in an innovative planning approach that added significant value to the project. This strategic partnership allowed for the site’s potential to be fully maximised.

The value added through shrewd planning  

The enhanced scheme approved for 14 units saw a GDV (Gross Development Value) increase to £9.97 million, an impressive £2.38 million gain through intelligent planning. This is before the enhanced planning for two further flats has been applied for, so that figure is likely to rise further.

The strong rapport that Sunnie has built with Ealing Council, in conjunction with a strong professional support team, has been core to the success of this project and others. With their trust and willingness to work with him, he’s been able to extract maximum value from this development while also delivering quality..

As a young developer, this effort and willingness to collaborate is a real tool to have in the arsenal and floats rafts of opportunity that wouldn’t otherwise be available.

Collaboration and Innovative Financing

This project marks the first equity partnership deal between VM Finance and our sister company VM Investments, showcasing the power of internal collaboration within the VM group. Seeing the potential of the project, we were able to work with VM Investments to invest equity into the project, opening up more opportunities for our client and for ourselves as the lender.

-

VM Finance offers lending packages of up to £5 million for small to medium-sized developers up and down the country.  

If you’re a developer looking for lending support for your next venture, we’d love to hear your plans and to discuss how we can help.