Clearwater Corporate Finance has advised residential property specialist, Adam Lawrence, in securing a £100m funding package – including a £50m equity investment from mid-market private equity firm, Graphite Capital to support the development of his new house building company, London Square.
Graphite’s funding will see it take a majority stake in the new company, which has also secured a further £50m in senior bank debt.
Adam Lawrence, who has over 20 years’ experience of house building within London and the South East, will lead London Square. With a proven track record of acquiring land and optimising development returns, Lawrence previously held a senior role at residential house builder, Barratt Developments, creating and leading the company’s West London division. Most recently, he was regional chairman of the London and Thames Gateway business delivering in excess of 3,000 homes per annum.
London Square has already recruited former Fairview Homes regional chairman, Brian Betsy, as it looks to build an experienced management team in the coming months.
Within the next five years, the company aims to be building 600 homes a year on prime sites within the M25, and developing schemes with private and affordable housing with prices ranging from £200,000 to £1.5m.
A team from Clearwater led by partner, Marcus Archer, marketed the opportunity to potential investors, identifying Graphite as a suitable partner. Clearwater also worked closely Graphite to source additional capital, securing £50m in bank funding.
Marcus Archer, partner at Clearwater said: “With Adam’s experience and expertise, coupled with the sizable funding the business has secured, London Square is in a strong position to capitalise on the recent downturn in residential development in London and the South East, and the drop in land price values seen in recent years. The business is entering the market at a key time in the sector cycle, when demand for homes is slowly increasing.
“Taking into account the negative effects of the downturn on the UK property market, the nature and size of this deal is a credit to Adam and his vision for London Square.”