< p>Continuing to support the UK property market, an alternative lender has just completed a £12 million facility for a luxury nine apartment development in Kensington over a two-year term.

The loan provided by city-based Bank of London and Middle East (BLME) - an independent Sharia’a compliant lender – will be used by Curzon Asset Management to develop the property.

The facility will form part of BMLE’s current provision of over £240 million of property financing across the UK for residential, commercial properties and developments.

The lender’s Head of Property Finance, Alice Myers, explained that Kensington remains one of the most popular areas for Middle Eastern investors who buy 18 per cent of all prime new build property there.

She said: “The apartments will be marketed by Commodore Homes which, like BLME, has strong links to the MENA region. Now that the uncertainty surrounding tax has been clarified by George Osborne we expect to see significant interest from property investors in this development.”

Joseph Mansour, of development firm Curzon Asset Management, added: “We approached BLME as we sought Sharia’a compliant development finance that was competitively priced, and also in order to build a relationship that would benefit both parties through the synergies that exist and relate to our strong links in the MENA region.

“It is likely that the residential property development market will remain underfinanced in 2013, this presents an opportunity for banks like BLME to step in, alleviating the challenges imposed on property developers by the low levels of liquidity available.”

Other recent facilities BMLE has provided include:

• £4 million facility for Jaynic Investments LLP to develop the infrastructure at a research park in Haverhill, Cambridgeshire;
• £3.3 million facility for Acorn Property Group, to redevelop a former hotel for nine houses in St. Ives;
• £8.7 million facility for Ternion (Danehurst) Ltd, to construct a student accommodation scheme in Egham, Surrey;
• £11.5 million facility for Latchmere Properties Ltd to develop a former quarry for 15 luxury houses in Guildford, Surrey;
• £11.7 million facility for Cresswell Place Ltd, to redevelop a property in Kensington as a large luxury home; and
• £15 million facility as part of a “club” deal to finance the redevelopment of King’s Reach tower, London.