Secure Trust Bank (STB) Business Finance has completed a £4.5m land bridge loan to take Greyfriars House, a co-living development in Reading, through Gateway 2 and demolition. The funding leaves the borrower free to pursue either a sale or onward development funding.
The facility is STB’s second land bridge and its first for a co-living scheme. It runs for 18 months and went to a joint venture between Alara Investments and Elder.
At 50% LTV, the land bridge will carry the project through planning and demolition while the joint venture weighs a sale against a future development that STB may look to support.
The site at 20-30 Greyfriars Road, RG1 1NL, holds full planning permission (PL/24/1501) for a 266-bed co-living scheme. It sits in central Reading, a short walk from the station, and STB points to the town centre’s ongoing regeneration and demand for high-quality rental accommodation.
Ministry of Justice probation services occupied the building until they relocated in 2021. The building has since been stripped back for demolition, with plans to turn the former office space into a co-living scheme with resident amenities across 12 floors.
The joint venture came to STB through a long-standing relationship. Alara is an existing client, while a director at Elder had worked with the bank on a separate development project. The deal completed seven weeks after sanction.
“Greyfriars House was an opportunity we simply couldn’t ignore,” said Charlie Hustler, co-founder at Elder. “Its location in the heart of Reading, just minutes from the station, combined with the growing demand for co-living accommodation, makes it a compelling redevelopment project.
“The experience of working with STB has been seamless from the outset. What stood out was the ease of communication, the responsiveness of the team and the speed at which the transaction progressed.
“Having a lending partner that understood the opportunity and could move quickly was incredibly valuable, and we look forward to working together again in the future.”
“Greyfriars House represents an exciting opportunity to bring a prominent town centre building back into productive use and support the growth of co-living in Reading,” explained Mike Feasey, head of bridging at Secure Trust Bank Business Finance, who led the deal.
“Land bridge facilities play an important role in helping developers reposition assets and prepare sites for their next stage of development.
“The professionalism of everyone involved helped the deal progress smoothly, enabling us to provide a funding solution that gives the joint venture flexibility as it evaluates the best long-term outcome for the site.”
“Today’s borrowers need more than just funding,” noted John Griffin, commercial director at Secure Trust Bank Business Finance. “They need a trusted partner that understands their transaction and can support them through each stage of the property lifecycle.
“This deal demonstrates the value of combining specialist real estate expertise with a relationship-led approach, ensuring clients have the flexibility and support they need to progress their projects with confidence.”
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