The sponsor is a London residential investor who has owned the subject property since 2010, having sold the lower units on long leases while retaining the freehold. Following planning permission for a roof extension, they progressed a scheme to construct five luxury new-build apartments above the existing structure – one to three-bedroom units ranging from approximately 600 to 1,485 sq ft.

The sponsor brings extensive experience in London residential investments, with a long track record across acquisitions, asset management and development.

The project faced significant disruption following contractor insolvency and disputes with professional advisers. Despite construction being near completion, the distressed position meant the existing lender’s development facility was maturing before the works could finish – creating a critical funding gap.

The sponsor needed a lender able to act decisively within a tight deadline, provide structured drawdowns to fund the remaining works, and replace the existing facility without delay. Standard lending channels could not respond with the speed or flexibility required.

The facility was structured against a cross-collateralised portfolio of four assets, providing Cohort with diversified security and meaningful downside protection at a conservative 56% LTV.

Cohort Capital assessed the transaction on its fundamentals: an experienced sponsor with a proven track record in London residential, a near-complete scheme, and a well-secured portfolio of assets. The disruption caused by contractor insolvency was treated as a temporary setback rather than a structural failing, and the facility was designed to resolve it.

The facility enabled the sponsor to repay the existing lender, create the breathing space required to appoint and settle with a new contractor, and allocate £700,000 to complete the remaining works to practical completion.

Recognising the construction risk that remained following prior contractor failure, Cohort structured the facility with staged drawdowns monitored by a quantity surveyor, alongside cross-collateralised charges across the four-asset portfolio. This approach provided both oversight of the completion process and strong downside protection for Cohort.

From underwriting to completion, the transaction completed in just two weeks — providing the speed and certainty the sponsor needed against the maturing facility deadline. Upon practical completion, the borrower will refinance the completed portfolio onto long-term Buy-to-Let facilities.