United Trust Bank (UTB) Property Development was approached to fund the acquisition and redevelopment of a substantial former office building, enabling the creation of up to 119 new apartments.
The existing three storey property already benefited from permission to convert the building into 83 studio and one to two bed apartments, each with at least one parking space within the generous surrounding grounds. This consented scheme carried a projected GDV of just over £20m.
However, the experienced developer team identified the opportunity to significantly enhance the project. By adding two new storeys to the roof, they could deliver a further 36 apartments, increasing the total scheme to 119 units and boosting the potential GDV to £30m.
With the customer already exchanged on the purchase and facing a fixed completion deadline, UTB moved quickly to structure a flexible, phased facility. This enabled the borrowers to complete on time and commence works under the existing consent. The facility was proposed on the basis that, should the enhanced planning be approved, UTB would increase the total facility to over £20m to support the additional construction cost of the airspace extension. Several months on, and with intervention from the Secretary of State, the council eventually approved the enhanced scheme.
| Borrower | Entrepreneurial Developer |
| Amount | £13.8m loan rising to £20.5m |
| Loan Type | Acquisition and Development Finance Facility |
| LTGDV | 67% |
| Term | 24 months |
| Location | South-Central England |
| Loan Purpose | Repurpose of a redundant office building |
| Special Feature | Additional value add opportunity through airspace extension |