Northwest based ethical property developer Integritas Property Group (IPG) has secured a £5 million development loan from StreamBank to fund the next step of IPG’s luxury residential development at Bastion Point in Liverpool.
The funding has been brokered by GapBridge Capital, and it will allow the completion of the first phase of the development, which comprises 69 one and two-bedroom contemporary high-specification apartments set over seven floors.
Located in Vauxhall, just a short distance from Liverpool’s vibrant city centre, Bastion Point comprises a total of 240 one and two-bedroom contemporary high-specification apartments.
Ethical property developer
Designed by Northwest-based Snow Architects, the development will offer residents a landscaped communal garden, bicycle storage, and a dedicated concierge, plugging the gap for much-needed high-quality rental properties in the area.
The development, which is a short walk from the World Heritage site of Albert Docks, will include ground floor space for retail units that will be available for use as cafes, shops and other leisure facilities.
All 69 units from the first phase of the development have already been purchased leasehold, with rents expected to yield 7.5%, and short-term lettings investors yielding upwards of 10% p/a.
Mitchell Walsh, Managing Director of IPG, said: “We are thrilled to have secured this development loan from Streambank. It enables IPG to swiftly complete phase one of the project, and it also represents the first loan of its kind for IPG from a registered bank.
“We now look forward to delivering all units in phase one, which have already sold out, so we can play our part in the regeneration of this area of Liverpool by providing well-needed quality housing.
Wonderful living experience
“As an ethical developer, IPG has a long-term commitment to helping grow sustainable communities in the Northwest, and we believe Bastion Point will provide a wonderful living experience for Liverpool’s residents.”
Liverpool’s vibrant property market consistently retains its allure for buy-to-let investors, maintaining its appeal due to its robust performance.
Liverpool experienced remarkable year-on-year growth of 8.6% in property prices between 2021 and 2022, with the average property price currently sitting at £215,794, with flats fetching over £141,424.
This strong price growth is expected to continue relative to the context of the wider UK property market, making the development well-positioned to generate strong returns from investments in Liverpool’s property market.
The wider Northwest region as a whole is also experiencing a period of growth, with average prices rising 7.2% over the past year. This is being driven by factors including the economy, high employment rates and a high supply/demand imbalance.
The high desirability of cities such as Liverpool in particular, is because of the diverse culture, high quality of properties and strong communities, all of which are highly attractive for investors looking for buy-to-let properties.
James Evans, Business Development Manager at StreamBank, commented: “We’re delighted with the progress of this development; this was an exciting deal for us that ticked a lot of boxes.
“Integritas Property Group is a professional outfit that has a great CV of completed development schemes and it was apparent from the outset they knew what they wanted. Our business model of deploying regionally based teams who understand the local property market helps both the client and the Bank in delivering workable solutions.
“IPG presented a complex, phased scheme that demanded a bespoke funding solution to achieve the client’s vision. Getting to the heart of the project quickly, we understood the unique needs of the project and agreed a flexible funding package to support the development. I’m looking forward to continuing the relationship and seeing the scheme progress through the build.”
Mark Ragan, GapBridge Capital UK Country Manager, said: “It’s been a pleasure working with Mitchell and the team at IPG. In a challenging funding market, we are very pleased to get the project underway and it’s a testament to the hard work of the team at IPG in delivering Streambank a high-quality project.
“And I must mention James and the team at Streambank for being very receptive to the project; with great localised knowledge, they were up to speed with the project requirements from the start.”