There was a time – and wasn’t too long ago – when Liverpool could stake a claim to being the centre of the cultural universe. It wasn’t just about the Beatles. Then as now, the city was a thriving hub for music, poetry and the visual arts, all existing within the larger context of an industrial and maritime economy. And while that cross-cultural heritage lives, the face of the city is changing. Witness one of Liverpool’s most important regeneration projects – the Baltic Quarter. Retaining the industrial backdrop, it’s a home for digital and creative businesses, live music and on-trend nightlife. It is also a residential centre and money raised through The Route – Finance’s Private Debt Platform for a new property development is playing a significant role in building 130 new homes.
Scheduled for completion in 2020 by Crossfield Exclusive Developments, the next phase of the Baltic View project will deliver not only residential units but also workspaces for entrepreneurs and business owners who are drawn to the district. For its part, The Route is providing a loan facility of £2.6 million out of a £12.6 million total. When completed, the project will have a gross development value (GDV) of £20 million.
Taken in isolation, The Route’s contribution to the Baltic View development illustrates the simple fact that the Private Debt Platform model can play an important role in funding major projects which make a genuine contribution to the built environment of our towns and cities. Baltic View is set to offer an opportunity for its residents to live and also work in one of the most vibrant parts of an already lively and creative city. It represents a genuine regeneration that aligns with a current trend towards urban living.
But The Route’s contribution to Baltic View does not exist in isolation. In locations across Britain, money contributed from a pool of Route – City wealth club Members is backing key development projects.
In Scotland, The Route has advanced a further £3 million (part of an £8.2 million package) to Glenisla Developments to fund 60 dementia care home units, three business units and twenty bungalows for the elderly in Perthshire.
Down in the south east of England and The Route has confirmed a further £5 million to complete the final phase of a mixed-use development scheme in the commuter town of Luton. This forms part of a £1.5 billion regeneration package aimed at providing houses, business premises and leisure facilities.
Elsewhere in the country, The Route has agreed on finance for projects in Nottingham, the Cotswolds, Gloucestershire, and Ascot.
The Private Debt Platform
The Route – Finance’s Private Debt Platform was established to provide loans to property developers and entrepreneurs to fund viable projects that might, nonetheless, fall outside the lending criteria of banks and other traditional lenders. Over time, it has carved out a particular niche providing capital for property projects.
In that respect, it’s not alone in the alternative finance market. A number of Peer-to-Peer lending platforms also focus on property. However, The Route’s model is different. Opportunities to invest are offered solely to Members of The Route – City wealth club. All are high net worth individuals who agree to commit money in advance. This arrangement means that the money is available and doesn’t have to be raised on a project-by-project basis. It’s a model that has proved hugely reassuring for developers. Put simply, they know that if an application for capital is accepted after due diligence, the money will be available.
The Private Debt Platform model has also proved attractive for Members. The Route’s expertise in backing value-generating projects – coupled with a commitment to thorough due diligence – has delivered superior returns for investors.
Equally important, capital is not tied up for long periods. A typical project lasts just 12 to 18 months.
And The Route’s Private Debt Platform offers Members exposure to projects that are secured against the value of properties. Potentially this provides not only superior returns but also lower risks than, say, equity investment.
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