Recognise Bank has completed an £801,500 bridging loan to support the acquisition of a mixed-use property in Liverpool, with plans for redevelopment and future residential conversion.
The lender provided the 12-month facility at 70% loan-to-value to an experienced property developer operating through a special purpose vehicle, marking the fourth completed transaction between the borrower and the bank.
The funding will support the acquisition of a four-storey Victorian building previously used as office accommodation alongside a 30-bed hostel, with associated parking.
The borrower has already secured planning permission to convert part of the building into a 34-bed HMO while retaining elements of the existing hostel and mixed-use configuration.
Following completion, the developer intends to progress its business plan before seeking amendments to the existing planning consent in order to deliver a larger residential scheme of up to 45 apartments.
The transaction was introduced by Mark Jerman of Watts Commercial Finance.
Recognise Bank said the deal required a detailed assessment because of the building’s scale, mixed-use history and phased redevelopment plans. The lender worked with the borrower and broker to structure a facility that supported both the acquisition and the longer-term exit strategy.
Paul Bagan (pictured), lending manager at Recognise Bank, says: “This was a perfect example of how we support experienced developers with assets that have multiple potential uses and evolving planning strategies.
“The property combines an existing income-generating use with a clear repositioning opportunity, and the borrower has a proven track record of delivering similar schemes.
“We took a pragmatic view of both the current asset and the future plans, ensuring the structure worked for the acquisition while providing flexibility for the next stage of the project.
“Having worked with the borrower on several previous transactions, we were able to move efficiently and with clarity, maintaining close communication with the broker throughout to ensure the deal progressed smoothly.”
Mark Jerman of Watts Commercial Finance adds: “This asset was complex, with many moving parts, so it was important to work with a lender that could look beyond the current use and understand the borrower’s future plans.
“Recognise Bank gave us clarity from the very start and took a decisive view on how the transaction should be structured. That certainty is exactly what brokers need when trying to move cases like this forward.”
