Recognise Bank has completed a £1.5 million bridging loan to support the acquisition of a mixed-use commercial property in Canterbury, with the borrower planning a residential-led repositioning of the site.
The £1,505,000 facility was arranged as a 15-month bridging loan at 68.41% loan-to-value and introduced by Commercial Finance Brokers.
The borrower, an experienced developer with a background in ground-up developments and heavy refurbishments, intends to secure planning permission to convert the upper floors of the asset into residential accommodation while improving the tenant mix across the wider scheme.
The Canterbury property comprises a collection of interconnecting terraced buildings, including several Grade II listed properties alongside a purpose-built office building dating from the 1950s. Parts of the asset are currently tenanted.
Recognise Bank said the transaction involved several layers of complexity, including a below-market-value purchase structure, planning restrictions affecting the timing of the redevelopment strategy, and the listed status of parts of the site.
The lender worked alongside the borrower and broker to structure a facility designed to provide sufficient time for planning progression, with an exit expected through development finance once planning consent has been obtained.
The transaction was led by Heather Mitchell, lending manager at Recognise Bank, with support from the bank’s wider lending and operations teams.
Mitchell (pictured) says: “This was an experienced borrower with a clear plan to reposition a complex, multi-building asset. The key was structuring a facility that allowed time to navigate planning considerations while maintaining momentum on the acquisition.
“We worked closely with the broker to take a considered approach to the risks, ensuring the loan was aligned to the borrower’s strategy and providing the flexibility needed to move the project forward.”
Kipp Noble of Commercial Finance Brokers adds: “This was a nuanced deal involving a mix of listed and more modern buildings, alongside planning considerations that required a lender willing to take a pragmatic view.
“Recognise Bank understood the opportunity and worked collaboratively to structure a facility that gives the borrower the time and certainty needed to deliver their plans.”
Recognise Bank said it continues to focus on short-term lending across commercial and residential property, particularly in cases involving more complex assets or planning-led strategies.
