Prospect Capital are delighted to have assisted with the acquisition of a substantial site in Hythe, Kent. The property currently comprises a redundant 13.17 acre site with several dilapidated former school buildings. The property benefits from planning consent for 150 units in total, with a 10% affordable housing provision. The surrounding area is predominantly residential in nature, characterised by blocks of luxury apartments and high value detached houses set within generous grounds.
The Hythe/Sandgate area is becoming increasingly popular as a second home location, boosted by the regeneration of neighbouring Folkestone, with sea-facing properties highly sought after along this part of the South Kent coast. Demand comes from local buyers, retired couples and second homeowners where demand is strongest for high specification sea-facing units for both purchase and rent.
The borrower had an option on the site for five years, and Prospect Capital provided 90% of the purchase price. The site has a market value of £17.25m and a GDV of £142.55m.