Lendhub has completed a £3.7m development facility to fund the conversion of an office block in Brentford.

This facility will be used by the developer to acquire and convert two vacant office units, developing them into 15 residential apartments.

The deal was introduced by Hirschle Hughes.

This 18-month facility was constructed at 69% LTV and 69% LTGDV, with rolled interest and 100% of the £1.56m construction costs funded. The office block is made up of two adjoining three-storey units with approximately 10,000 sq ft of proposed gross internal area, a current market value of  £2.45m and a target aggregate gross development value of £5.4m.

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The build will run for 12 months, followed by a six-month refinance and sales window. No structural works are required, significantly reducing construction risk.

“At 69% LTV with no structural works and three distinct exit routes, the credit fundamentals were clear,’’ said Jack Bruce, relationship manager at Lendhub.

“Brentford is in the middle of one of London’s most significant regeneration programmes, and schemes like this are exactly the kind of housing delivery the market needs.”

James McCudden-Hughes, director at Hirschle Hughes, added: “[Lendhub] met the borrower on site, assessed the professional team as a whole rather than focusing solely on the SPV’s age, and structured a facility that funds the full cost of works with sensible leverage. That’s the kind of underwriting that gives brokers confidence when placing business."