FRP Real Estate Advisory has structured a £1.1m refinance for an experienced property refurbishment contractor, releasing equity from a completed office-to-residential conversion in Reading. The facility spans four lenders and seven separate leases, and will fund the client’s next project: a further office-to-residential scheme in the South East.
The deal was arranged at 75% LTV, with MT Finance and Landbay among the four participating lenders. To satisfy individual lender requirements, the property was divided into seven leases: six residential units and one ground-floor commercial unit, with the freehold retained in a holding entity. All four facilities were required to complete simultaneously.
The client, a contractor with prior experience in refurbishment work, self-funded the conversion of a former hairdresser’s premises with office space above, completing the scheme earlier this year. The refinance was led by Gareth Briggs, associate director at FRP Real Estate Advisory, who had previously advised the same client on an earlier transaction. Legal support was provided by Jury O’Shea LLP.
The transaction sits within a broader pattern of activity in the office-to-residential sector. Conversions under permitted development rights delivered 5,154 new homes in England in 2024-25, based on Ministry of Housing, Communities and Local Government data. Completion volumes have fallen steadily since 2020, however, as the most readily convertible office stock is absorbed.
“Coordinating four lenders across seven leases so everything was completed on the same day was a genuine structuring challenge, and it took real patience from everyone involved to get there,” said Briggs (pictured).
“Each lender had its own requirements, so aligning the leases, the freehold structure and the timing took some careful planning behind the scenes. It’s great to be working with the client again after a previous deal together, and I’m looking forward to helping them get moving on their next project.”
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