Mantra Capital, the boutique commercial finance consultancy, has arranged a £3.25 million load facility for a newly completed 48-unit office-to-residential development in Peterborough. The residential investment loan was against properties comprising one and two-bed flats that will be let out by Mantra’s client, Arbuthnot Commercial, primarily to young professionals.
“Arbuthnot Commercial is a fantastic lender to work with, as their underwriting is flexible and they always make the effort to genuinely understand a borrower’s circumstances and goals,” said Nimesh Sanghrajka, managing director at Mantra Capital. “This was a long-term client of ours with an excellent track record who is tapping into the exciting growth potential of towns and cities such as Peterborough that are within an hour of London. PDRs are contributing to the rebirth of the regions.”
Peterborough is facing a sharp increase in development activity, especially office-to-residential projects that are facilitated by Permitted Development Rights. Manta Capital’s founders think that this growth in the regional development and rental market is due to the sharp rise in ‘challenger’ developers, the commercial agility of challenger and private banks, and the increased value found outside the capital.
“Our team has worked with Mantra on a number of occasions in the past and, with their banking background, they instinctively understand how we operate,” said Stephen Fletcher, managing director at Arbuthnot Commercial. “With more and more developer and landlord activity shifting out of London, Peterborough, which is a comfortable commute away from the capital, is proving an increasingly buoyant market and one that we are very comfortable with, given its long-term outlook.”