This latest deal follows the completion of an £11.4m hybrid facility on a luxury apartment scheme in Hove.

The facility includes a five-year term amortised over 20 years and was drawn down within three weeks.

The deal marks the fourth property financed for the borrower through InterBay.

The deal follows Alternative Bridging’s announcement of a £150m funding line to boost residential lending.

The facility covered 100% of both the purchase and refurbishment costs.

This latest deal follows the completion of an £800k bridge on a complex semi-commercial project in Chiswick.

The loan was used to refinance existing debt and unlock equity for property improvements.

The micro-hotel sector, including capsule hotels, has grown by an average of 16.4% per year since 2012, outperforming traditional hostels in profitability per square foot.

The deal was completed on Aspen’s Flat Rate at 0.87% over 12 months, while the exit will be achieved through the sale of the property.

Valuations for the transaction were undertaken by JLL, and legal due diligence was provided by Clarion.