PRS developer Essential Living has agreed a £20 million debt facility from Venn Partners, to help it develop the Perfume Factory site in Acton. The project, converting the commercial premises into private rental homes, will deliver around 500 new apartments.

New private rental homes looking sweet at the Perfume Factory, Acton

Alternative lender Venn will advance up to £20 million on a three year debt facility, with an option to extend for two more years.

Essential Living paid £30 million for the site in July, and is currently consulting with the local authority and nearby residents over the redevelopment. Completion is some way off, with the company not expecting to start work until 2016.

Venn has just been appointed to run the government’s Private Rented Sector Guarantee Scheme, which is destined to provide loans to encourage more private sector development of flats for rent. The Essential Living deal is not under this new regime, which is still be established.

This is not the first time that Essential Living has tapped alternative funding sources, specifically those that are inclined to support the private rented sector. Its projects in Maidenhead, Archway and Bethnal Green have recently received a £52 million loan via the government-backed Build to Rent fund. In that instance, RBS and the Homes & Communities Agency are supporting the three year funding.