Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Canterbury Commercial Property Secures £1.5m Bridging Loan for Mixed-Use Scheme
Recognise Bank has provided a £1.5 million bridging loan to support the acquisition of a multi-building commercial property in Canterbury, Kent. The asset includes several interconnected terraced properties, featuring both Grade II listed buildings and a 1950s office block.
The 15-month bridging facility was arranged through Commercial Finance Brokers at a 68.41% loan-to-value ratio. The loan supports the purchase of a partially tenanted asset, with the borrower planning to seek planning permission to convert upper floors to residential use and improve the commercial tenant mix across the scheme.
The transaction required a detailed assessment due to its complex structure, which included a below-market-value purchase price and an existing planning moratorium affecting the development timeline. The listed status of some buildings within the asset added further complexity to the proposed conversion plans.
According to the report, similar refurbishment funding arrangements have been used by investors seeking to reposition commercial assets. The structure of this deal allows time for planning consent to be obtained, with an intended exit through development finance once permissions are secured.
The deal was completed within the required timeframe following coordination between the lender, broker, and borrower. Recognise Bank’s lending and operations teams supported the transaction.
This transaction reflects ongoing activity in the commercial-to-residential conversion sector, particularly in mixed-use developments that combine heritage buildings with modern structures. Such projects present specific challenges for portfolio investors seeking flexible financing solutions.
Source: PropertyWire