Some established customers of the bank, who are already borrowing £3.8m to fund the conversion of a city centre office building to flats, approached us with a further proposal. The second proposal was similar to the existing scheme in that it was also for a conversion of offices to flats utilising the Permitted Development Rights orders to gain planning. The second office building is also located close to the first development.
The first project is well advanced in construction and off-plan sales have been achieved on over 50% of the flats. This promising sales activity convinced us that there would be good demand from the local market to support another similar project in close proximity to the first.
We not only agreed facilities of £4.37m for the new project, but were additionally happy to bridge £0.3m of equity secured on the first development.
Loan Amount: £4,370,000
GDV: £7,600,000