Debt arrangement and pref-equity investment in a prime office-to-resi scheme in Brighton

August 2016

Excellion arranged a senior debt package (comprising an acquisition loan, a refurbishment loan and a VAT loan) and was invited to participate, through its affiliated investment fund, in a ‘preferred equity’ investment in the acquisition of a prime office building (Russell House) in Brighton to be converted to 52 residential flats.

Russell House forms part of a gated courtyard development in the centre of Brighton, with key retail destinations to the west of the property. It is located within 10 minutes walking distance from the mainline railway, with Brighton Beach just a 5-minute walk away. This asset is being acquired for conversion to residential apartments, with a total of around 30,000 sqft of residential space.

The project sponsor is an established property developer with experience in residential developments under the Permitted Development (PD) regime in the UK. A valuation undertaken on behalf of the bank sets out a Gross Development Value (GDV) of £20.7m.