Shojin is pleased to announce the successful completion of a residential development project in Romford, East London. The developer has fully repaid £2.078 million in capital and interest to 52 investors, delivering average annual returns of 16.2% over the 21-month loan term. This is Shojin's fourth payout to investors in the last four months.
Launched in February 2023, this mezzanine loan raised £1.627 million through the Shojin platform. Mezzanine loans sit between senior debt and equity in the capital structure, offering investors higher returns in exchange for slightly increased risk.
"This project is a prime example of Shojin's ability to source and manage high-quality investment opportunities that deliver strong risk-adjusted returns for our investors," said Jacky Chan, Head of Investments at Shojin. "The Romford development's excellent location, connectivity, and execution underpin the impressive 16.2% average annual returns to investors."
Project highlights
Located in the London Borough of Havering, the development includes 46 residential units and 340m2 of commercial space. Romford is an important commercial and residential hub in East London, offering residents the best of both worlds: plentiful local green spaces and Essex countryside nearby, plus quick access to central London. The recently opened Elizabeth line connects Romford station to Liverpool Street in under 30 minutes.
Watch the below video for a tour of the finished development
The experienced developer
The developer and main contractor, Prime Phenix, focuses on luxury residential schemes in the south of England. Prior to this development, they had undertaken five schemes over six years, with a combined gross development value of over £36.35 million.
Although the project experienced minor initial delays, strong management ensured practical completion was achieved as planned in early summer 2024.
Exit achieved
Following practical completion, the borrower pursued their preferred exit route of refinance, facilitating repayment of the mezzanine loan and all interest owed to investors.
This was the desired outcome for investors and matches the favoured route presented at the funding stage of this project.
Balanced deal structure
Shojin and investors provided a mezzanine loan with a 21-month term to fund the development. The facility of £1.675 million represented a Loan to Gross Development Value (LTGDV) of 78% excluding interest. This LTGDV ratio offered attractive returns while maintaining a balanced risk profile. Additional security measures, including a part personal guarantee from the developer, further mitigated risk.
The senior lender was West One, who provided debt totalling £10.5 million.
Delivering strong returns
The successful exit of the North Street, Romford project is a great example of Shojin's commitment to identifying high-potential projects and delivering strong returns to our investors.
As we continue to source and structure attractive investment opportunities, we invite both new and experienced investors to explore upcoming projects on our platform. Join us in shaping the future of property investment and benefit from our expertise in navigating the real estate market.
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