Funding given for multi-million pound apartment complex with shops

A $5 billion dollar Saudi investment fund has obtained a loan to buy a site in Chiswick according to reports in the property press this week.

The reports say that specialist property lender, Octopus Property has provided a Saudi Arabian investor Sanabil Limited, with a £12.7million loan to fund the acquisition of a site in Chiswick on which 21 flats are to be developed. Sanabil is the sovereign investment fund of the Saudi government.

The planned development is for for residential apartments as well as a further 4,300 sq foot commercial unit and basement car park.

The location has not been specified and neither Sanabil or Octopus Property have confirmed any further details. One possibility is the Conduit House development at 309 Chiswick High Road which received planning permission to build 21 flats at the end of last year in a five storey block.

Gavin Eustace, head of residential development at Octopus Property, was quoted as saying, 'This is a well located site in a sought after residential area, where we anticipate strong demand for the completed units.'

It remains unclear why an investment fund with billion dollars of assets would need to borrow money to fund the acquisition. The Saudi company describes its investment strategy as "diversified by geography, industry and investment style in both Global Developed Markets and Global Emerging Markets." All the reports have specified that it is the Saudi sovereign fund Sanabil but there may be some confusion as some have called in Snabil Ltd which is a much smaller company based in Willesden.

Chiswick already has links with Saudi Arabia, as a Diplomatic Office of the Cultural Bureau of the Saudi embassy is based at 630 Chiswick High Road.

Construction of the apartments at Conduit House, comprising 19 one, two and three bed units, is expected to take 18 months, with the development manager being Mayfield Property Group.

September 30, 2018