GRE Finance has provided a stretch senior acquisition loan of £5.71m against a freehold vacant 50,000 sq ft office building on a three-acre site in Hainault, north east London.

Although the property does not benefit from planning permission, the company was able to provide a loan at 95% LTPP.

The property is allocated in the Redbridge Local Plan as an ‘opportunity site’ with strong potential to come forward for residential and mixed-use development.

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The borrower, Medina Capital Investments, intends to submit a planning application for a residential development of around 50 townhouses and a block of 40 affordable apartments, upon completion, the scheme is planned to have GDV of approximately £50m.

A second senior loan of £3.7m was agreed against an operational freehold, 82-room hotel in Burnham, the Burnham Beeches Hotel, for refinancing the debt on the property and paying for refurbishment.

After stabilisation it is estimated to bring the GDV to around £16m.

SPF acted as broker on both deals.

Clare Grimes, associate director at GRE Finance, said: “We are seeing more and more appetite among investors and developers to reposition obsolete offices and to create additional value in operational assets.

“I would like also to thank SPF as the introducing advisor for both of these transactions.”