United Trust Bank (UTB) property development has provided two development facilities totalling £15.6m to Public Housing to support the acquisition, refinancing and redevelopment of two redundant properties into supported living accommodation for vulnerable adults in South West London.
The funding will enable the delivery of 92 en-suite supported living units across the two schemes, with a combined GDV of £26.5m.
The first facility comprises 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 supported living units. The second facility is a £9.1m, 24-month loan supporting the acquisition and conversion of a former convent into 64 en-suite supported living units.
Daniel Carlisle, senior director – property development at United Trust Bank, said: “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. 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 at Public Housing, added: “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.”
