United Trust Bank (UTB) has provided two development facilities totalling £15.6m to fund the acquisition, refinancing and redevelopment of two redundant South-West London properties into supported living accommodation for vulnerable adults.
The funding has been provided to Public Housing Ltd, an existing UTB customer. The two schemes will deliver 92 en-suite supported living units with a combined gross development value (GDV) of £26.5m.
The first facility is a £6.5m, 15-month loan to refinance an existing bridging loan while funding the conversion of a former care home into 28 en-suite units. The scheme will include counselling rooms, communal breakout areas and shared facilities within the existing building footprint.
The second facility is a £9.1m, 24-month loan to fund the acquisition and conversion of a former convent into 64 en-suite units. No change of planning consent is required, reducing planning risk, and the completed development will include shared kitchens, communal facilities and dedicated space for 24-hour support staff.
Both conversions repurpose underutilised buildings in a sector where demand for specialist supported living accommodation continues to grow, and both avoid the planning and delivery risk associated with ground-up development.
“This was an excellent opportunity to support an experienced developer delivering high-quality supported living accommodation in a sector where demand continues to outstrip supply,” said Daniel Carlisle, senior director of property development at United Trust Bank.
“By repurposing existing buildings, the borrower is bringing forward much-needed specialist housing while reducing planning risk and making efficient use of existing assets.
“The transaction also demonstrates the flexibility of UTB’s development finance proposition. We worked closely with Public Housing Ltd to structure facilities that supported both the acquisition and redevelopment of the sites, while recognising the strength of the exit strategy and the long-term demand for this type of accommodation.”
Chris Wilson, director of Public Housing Ltd, commented: “Our objective is to create high-quality supported living environments that provide vulnerable adults with safe, modern accommodation designed around their long-term needs. These projects demonstrate how redundant buildings can be given a new purpose while delivering lasting social value for local communities.
“UTB understood our vision from the outset and took a pragmatic approach to structuring funding across two different schemes. Their ability to understand both the development challenges and the commercial opportunity gave us the confidence to move forward, and we look forward to delivering schemes that will make a meaningful contribution to supported housing provision in London.”
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