United Trust Bank (UTB) is providing £24.4m of development funding to support the creation of 70 apartments in a highly sought after area of South-West London.
UTB’s borrowers acquired the tired 1960s building in 2021 having originally been offices and later converted to 218 student bedsits. Having become dated and no longer fit for purpose, the developers subsequently obtained planning consent for a change of use to 70 residential apartments offering studio to 3 bedroom accommodation.
The building comprises two blocks in an L-shape and a central core connecting with two passenger lifts. The layout will enable the developers to phase the scheme, completing 22 units in block one before moving on to the remaining 48 units in block two. As both blocks have separate entrances, work on the second phase should have minimal impact on the residents of phase 1.
The developers have also established that the building is structurally suitable to add two further storeys to the rooftop, a potential third phase, subject to planning.
GDV of phases 1&2 is estimated to be £35m with the rolling works expected to take just over two years.
| Borrower | Developer |
| Amount | £24.4 million |
| Loan Type | Development Finance |
| LTC | 67% |
| Term | 30 months |
| Location | SW London |
| Loan Purpose | Redevelopment of former student accommodation to provide 70 new apartments |
| Special Feature | Preserved borrower equity by splitting the development into two phases Additional airspace development potential |