United Trust Bank (UTB) has agreed to provide £8.6m to jointly fund phase one of the conversion of a vacant office block under permitted development rights to 64 new apartments.
The five-storey building is situated in an affluent town on the outskirts of Greater London.
The apartments created by the scheme will be leased to a housing association and add much-needed homes to the local rental stock.
The experienced developer of the project — who had previously borrowed from UTB — was seeking high LTC funding for the £14.5m project in order to retain equity for other opportunities.
- UTB and Iron Bridge jointly fund Hertfordshire development
- UTB lends £9.7m for historic Welsh building conversion
- Midlands £11m co-living development becomes fully occupied
The client operates in the build-to-rent sector, and has built and let over 1,000 units to housing associations in the last 15 years.
UTB is now in discussions with the developer to fund phase two of the project to create a further 40 units.
Case study snapshot:
- experienced build-to-rent developer and returning UTB customer
- high LTC enabled customer to retain equity for other projects
- amount £8.6m
- apartments to be leased to a local authority on completion
- permitted development conversion of vacant five-storey office building to 64 apartments
- LTC 76% – senior only