Melt Homes and Espalier Ventures are planning to develop an aparthotel with between 120-175 units at London's Oval, subject to planning permission.
The project is a joint venture between property development and investment group Melt Homes, and private family investment office Espalier Ventures, and is aimed at supplying an expected boom in tourists visiting the Kia Oval after England recently won the Cricket World Cup.
OakNorth Bank has provided a £3.54m property development finance facility to the joint venture to fund the acquisition of the mixed-use property at 68‐86 Clapham Road, and in its place develop the aparthotel.
Evan Maindonald, director at Melt Homes, said: "We are very excited about this project – the site is an excellent location and has so much potential, especially given how popular the area is with tourists and cricket fans! Whenever there is a need to submit planning permission, speed is of the essence, which is why we felt OakNorth Bank would be the right partner for this transaction."
Rick Gibbs of Espalier Ventures said: "We are delighted to be involved in this deal with Melt and OakNorth. It is our fifth deal in the last six months and is a good fit for us, given that we are looking to increase our exposure to real estate investment with a particular focus on aparthotel, co-living and selected areas of prime central London."
Hemesh Patel, property finance director at OakNorth Bank, added: "Given the importance of tourism to London's economy, the city needs to ensure that it is able to meet the demands of tourists wanting to visit the capital. The most important aspect of this is providing suitable accommodation, but unfortunately the supply of serviced rooms and aparthotels is tight, and the cost of accommodation is expensive.
"With England winning the Cricket World Cup earlier this year, both Lord's and the Kia Oval expect to see a boom in tourism, and as such an increased need for accommodation. The team have a wealth of experience and in combining resources, will be able to bring some much-needed new rooms to the Oval area."