£3.2M Property Refinancing & Heavy Refurbishment – Surrey
We successfully provided a £3.2 million property refinancing and refurbishment loan for the transformation of a commercial office building into 20 residential apartments in Surrey.
Overview
We successfully provided a £3.2 million property refinancing and refurbishment loan for the transformation of a commercial office building into 20 residential apartments in Surrey. This deal highlights our ability to support complex office-to-residential conversions, structuring a solution that optimised both refinancing existing debt and providing development capital.
The Challenge
The borrower needed to refinance an existing bridge loan while securing additional funding for the heavy refurbishment and conversion of a four-story office building into residential units. The key challenges included:
– Managing staged drawdowns to match the construction timeline.
– Ensuring a smooth transition from commercial to residential use under Prior Approval planning.
– Structuring an exit plan through the sale of completed apartments.
Our Solution
We structured an 18-month loan with a combination of initial and staged drawdowns to align with the project milestones:
✅ Initial Drawdown: £1.175M to refinance the existing bridge loan.
✅ Staged Drawdowns: £1.615M to fund the phased conversion into residential units.
✅ Rolled-Up Interest: Providing cash flow flexibility for the borrower.
✅ Optimized Leverage: Day 1 Net LTV: 70%, Gross LTC: 85% and Gross LTGDV: 68%
The Outcome
🔹 £3.2M facility secured with structured drawdowns.
🔹 Successful transition from commercial to residential use, with planning already approved.
🔹 Projected GDV of £4.71M, demonstrating strong value creation.
🔹 Exit via the sale of completed apartments, ensuring a clear repayment strategy.
Why This Matters
This transaction highlights our expertise in refinancing and funding complex conversion projects, particularly in the office-to-residential sector. By structuring a tailored solution, we provided the borrower with the capital needed to refinance, develop, and ultimately exit through sales at a significant uplift in value.
If you’re looking for bespoke financing solutions for property acquisitions, refurbishments, or conversions, get in touch with our team today.