ASK Partners (ASK) has provided a loan to support the redevelopment of a mixed-use site on City Road, London. The project is a joint venture between property development company HUB Residential (HUB) and global investment firm H.I.G. Capital (H.I.G.).

The funding will facilitate the acquisition of a freehold site comprising three interconnected office buildings near Old Street roundabout. The joint venture aims to obtain planning permission to demolish the existing structures and develop a residential-led scheme with new commercial space. Collaboration with Hackney Council will ensure the project aligns with community needs and adds value to the Borough.

This loan extends ASK’s involvement with the site, following their refinancing for the vendor in June 2023. The joint venture subsequently purchased the site from ASK’s client.

Elliot Blatt, Head of Origination at ASK, stated, “This is an excellent redevelopment site and is a great option for a residential-led strategy given its location nearby the soon-to-be-completed Old Street roundabout. The area is due to become a transport hub for both students and young professionals, making the development exceptionally well suited to the area. It was a pleasure to work with HUB and H.I.G., and we wish them well with their business plan for the site.”

Miles Keeley, Head of Acquisitions at HUB, commented, “This is a great example of our investment thesis in action, targeting secondary buildings in prime locations that allow value to be added. This is HUB’s first scheme in Hackney and our first deal with H.I.G., as well as our second financing with ASK. We are pleased to be working with both counterparties on this transaction.”

ASK’s loan portfolio recently surpassed £1 billion, demonstrating the firm’s resilience and adaptability in maintaining lending activities through various economic cycles. This milestone highlights ASK’s ability to offer private client investors diverse real estate debt investment opportunities according to their risk profile.

This project is likely to be featured in upcoming property networking events in London, showcasing opportunities for construction investment and collaboration in the thriving city development sector.