United Trust Bank (UTB) was introduced to the scheme whilst at MIPIM 2024. The borrower, a returning customer, was negotiating to purchase a redundant office block in London with planning consent for conversion to 50 apartments, the creation of 9 new airspace duplex apartments on the roof and 3000 sq. ft. of ground floor commercial space. The total GDV was estimated at c£40m.
The borrowers have considerable experience in both new build and conversions with one of the principals of the venture having previously completed several airspace schemes. The £27.8m facility includes funding for the acquisition of the freehold, construction costs, interest, fees, S106 liability and a 4-month VAT bridge. The development is situated in a highly sought after area of London with excellent transport links and strong rental demand. As such, the borrowers intend to retain the building for investment once complete, with the exit expected to come from refinancing to a long-term investment loan.
| Borrower | Specialist Developer |
| Amount | £27.8 million |
| Loan Type | Development Finance |
| LTC | 89% |
| Term | 22 months |
| Location | London Docklands |
| Loan Purpose | Office block conversion and airspace development over ground floor commercial space |
| Special Feature | VAT bridge Rolled up interest, feeds and charges |