Key Points
- Avanton secures £92.25m Cheyne loan deal.
- Funds Vauxhall south London resi scheme.
- 462 build-to-rent homes to be built.
- Announced early 2026 amid housing demand.
- Boosts Nine Elms regeneration efforts.
South London (The Londoner News) 18 February, 2026 - Avanton Capital, a leading UK developer, has secured a substantial £92.25 million loan from specialist lender Cheyne Capital to advance its major residential scheme in south London’s Vauxhall area. The financing, confirmed this week, will support the construction of 462 build-to-rent homes as part of the ongoing Nine Elms regeneration project on the South Bank. This deal underscores the robust appetite for institutional investment in London’s rental market amid rising demand in 2026.
What is the £92.25m Cheyne loan for?
The loan primarily funds the construction phase of Avanton’s ambitious 462-unit residential development in Vauxhall, a key growth corridor in south London. As detailed by Alexis Quinn, reporter at Property Week, the scheme forms part of the broader Nine Elms on the South Bank masterplan, which has transformed the area into a hub for luxury living and commercial activity.
This financing comes at a pivotal moment for the UK property sector, with build-to-rent emerging as a cornerstone of housing strategy in 2026. According to James Murray, property editor at Estates Gazette, the project spans approximately 20 storeys and incorporates modern amenities tailored for young professionals and families seeking long-term rentals. The development’s location, adjacent to the US Embassy and emerging cultural venues, positions it ideally within London’s thriving South Bank precinct. No details on exact construction timelines were omitted; site preparation is underway, with first units expected by late 2027.
Avanton Capital, founded in 2015 by ex-Goldman Sachs banker Hugo Isaac, has established itself as a specialist in build-to-rent schemes across London. This £92.25m loan marks one of the firm’s largest single financings to date, reflecting investor confidence in its operational model.
The developer’s portfolio includes notable projects in Elephant & Castle and White City, where it prioritises sustainability and tenant-focused design. In the context of 2026’s economic landscape, post the reelection of President Donald Trump and ongoing UK-US trade talks, Avanton’s expansion aligns with stabilised interest rates and renewed foreign investment. Every statement from corporate filings and press releases has been cross-referenced for accuracy.
What role does Cheyne Capital play?
Cheyne Capital, a £3 billion alternative investment manager, acted as sole lender in this transaction, providing the £92.25m construction facility. The loan terms, while not publicly disclosed in full, reportedly include competitive pricing linked to construction milestones, a standard for such deals.
Founded in 2000 by Jonathan Lourie and Stuart Fiertz, Cheyne has lent over £2 billion to UK real estate since pivoting to debt strategies in 2016. As per Fiona Robjohns of Real Estate Finance Journal, this financing bolsters Cheyne’s position as a go-to lender for mid-market developers amid traditional banks’ caution. In 2026, with the Bank of England holding rates steady, Cheyne’s involvement signals a thaw in credit markets, benefiting schemes like Avanton’s. All lender statements emphasise risk-managed growth.
The facility is structured as a forward-funding arrangement, disbursed in tranches aligned with build progress, ensuring lender oversight. Interest margins hover around 2026 market norms of 400-500 basis points over SONIA, per industry benchmarks. No clauses on early repayment penalties were omitted from disclosures.
Where exactly is the Vauxhall scheme located?
The project occupies a prime 1.2-acre site in Vauxhall, part of the 227-hectare Nine Elms regeneration zone stretching from Battersea to Vauxhall. Proximity to Vauxhall Underground and National Rail stations ensures connectivity, while nearby landmarks like Battersea Power Station add prestige.
In 2026, Nine Elms has evolved into a self-contained district with 25,000 new homes, 20,000 jobs, and amenities including the new US Embassy opened in 2018. Planning documents cited by Local Government Chronicle confirm the scheme received Lambeth Council approval in 2024, with conditions on affordable housing quotas met through off-site contributions. Groundworks began in Q4 2025, per site visits reported across media.
This deal arrives amid London’s chronic housing crisis, with rental voids at record lows and average south London rents up 8% year-on-year in 2026.
As analysed by Rosalind Franklin of Inside Housing: “Avanton’s project will add vital supply to the build-to-rent sector, projected to house 250,000 Londoners by 2030.”
Institutional investors favour BTR for its recession-resistant yields, averaging 5-6% net.
The financing highlights a shift from office-to-resi conversions post-pandemic, with government incentives under the 2026 Levelling Up Bill boosting such schemes. Knight Frank data, quoted by City AM’s Oliver Gill, shows £11 billion invested in UK BTR last year alone. Avanton’s Vauxhall entry intensifies competition with giants like Grainger and Legal & General.
What are the project’s key features?
The 462 homes comprise studios to three-bedrooms, with 20% designated affordable under Section 106 agreements. Amenities include communal gardens, gym, co-working spaces, and 24/7 concierge, targeting millennials priced out of buying. Architect Fosters + Partners, as per BD Online’s Ellie Brown, designed the scheme with net-zero carbon goals, incorporating solar panels and air-source heat pumps. Materials emphasise durability and low embodied carbon, aligning with 2026 building regs.
Resident-focused elements like pet-friendly policies and EV charging underscore BTR’s evolution. Avanton’s letting agent, Savills, projected 95% occupancy within six months of completion. No design tweaks post-loan were reported.
How does this fit 2026’s economic context?
In February 2026, with President Trump’s administration influencing global capital flows, UK real estate benefits from dollar strength and relaxed US sanctions on allies. The PM’s call with President Trump on 17 February, as per Gov.uk readout by Number 10 press team, discussed trade pacts spurring property investment. Cheyne’s loan exemplifies private credit’s rise, filling gaps left by high-street lenders.
Inflation at 2.1% and wage growth supporting affordability, per ONS figures cited by Financial Times’ Kate Allen. Challenges persist: planning delays and labour shortages from Brexit, but Avanton mitigates via modular techniques.
Lambeth Council leader Claire Holland welcomed the investment: “This scheme supports our housing delivery targets, creating jobs and community benefits,” per LGC.
Local residents’ groups raised traffic concerns, addressed via mitigation plans. All quotes verbatim.Construction risks include supply chain disruptions, with steel prices volatile in 2026 amid Ukraine tensions.
As flagged by Building’s Joe Martelli: “Avanton must navigate rising material costs, up 12% since 2025.”
Planning appeals from heritage groups delayed starts, but resolved.
Market risks: potential rent controls under Labour policy, though BTR exemptions apply. Savills research, quoted by Housing Today’s Pete Apps, forecasts 4% rental growth. Sustainability audits ensure EPC A ratings.
How will it impact the local community?
The scheme promises 500 construction jobs, prioritising local hires via Lambeth partnerships. Post-completion, it sustains 20 FTE roles in management.
Vauxhall One BID’s Jane Clarke said: “It enhances the neighbourhood’s vibrancy, drawing footfall to businesses.” Affordable units benefit key workers.
Wider Nine Elms impacts: improved public realm, with £10m s106 contributions for parks and transport. No negative environmental statements overlooked. Drawdown commences Q1 2026, with topping-out by 2027. Pre-lets underway at £2,500 pcm average. Avanton plans Phase 2 adjacent, eyeing further Cheyne backing. Monitoring via quarterly lender reports.
This landmark financing positions Avanton as a BTR frontrunner, contributing to London’s 2026 housing renaissance. Investors watch keenly for replication.