One hectare of disused land next to the planned new Bakerloo tube station off the Old Kent Road has gained approval for 565 new flats in a 38-storey tower block.
Southwark council has granted a resolution for the mixed-use Devonshire Square development subject to referral to the Mayor of London´s office and a three-year time-limit to start work.
The hybrid plans include 200 homes for social rent as well as 43,000 sq ft of commercial space for local businesses including light industrial use. Up to 4,771 sq m of the site will be dedicated to employment space, including flexible spaces to work, enterprise space, cafes with new shops.
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential Including Light Refurbishment | Up to 75% Lower of PP or MV | 0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. | 1% -1.5% Full fee added to the loan. |
| Semi Commercial Including Light Refurbishment | Up to 75% Lower of PP or MV | 0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial Including Light Refurbishment | Up to 70% Lower of PP or MV | 0.75% pm | ||||
| Residential | Up to 75% Lower of PP or MV | 0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial Heavy Refurbishment | Up to 70% Lower of PP or MV | 0.83% pm | 0.83% pm | 0.7% pm | ||
Southwark council has said this will create a new high street for Old Kent Road and opportunity for new community facilities, such as doctors and dentists.
Bike and tube give scheme top-notch communication links
Nearly half the site, formerly home to a BP petrol station and HSS tool hire building, will offer high quality public open space including a new public square, extensive tree planting, road improvements and wider pavements. There will be two new green public spaces on Sylvan Grove including a new resident’s garden and over 2,000 sq m on-site child play space.
The council says the scheme will offer space for food and plant growing for Devonshire Square residents with the possibility of a creation of a garden club.
The plans include space for new cycle lanes as part of a cycle superhighway along the Old Kent Road, safe areas to park cycles and provision for new bus stops.
Shaw Corporation has acted as strategic advisors for freehold property owner Barkwest Limited and construction is expected to start in 2021.
Property Loans by Hank Zarihs Associates
Financial brokers Hank Zarihs Associates said property development lenders were keen to offer construction loans for similar projects with excellent communication links to central London.