Secure Trust Bank Business Finance has provided a £4.5 million land bridge for a 266-bed co-living development in central Reading.
The 18-month facility has been agreed with a joint venture between Alara Investments and Elder and is secured against Greyfriars House on Greyfriars Road.
At 50% LTV, the loan will support the project through Gateway 2 and demolition while the joint venture considers whether to sell the site or proceed to development funding.
The transaction is Secure Trust Bank Business Finance’s second land bridge and its first facility for a co-living project. The lender may also consider providing development finance should the joint venture retain the scheme.
PLANNING IN PLACE FOR 266-BED SCHEME
Greyfriars House has full planning permission for a 266-bed co-living development across 12 floors. The site is close to Reading station and was formerly occupied by Ministry of Justice probation services, which relocated in 2021.
The existing building has since been stripped back ahead of demolition and redevelopment.
Alara Investments is an existing Secure Trust Bank client, while a director at Elder has previously worked with the lender on another development. The latest facility completed seven weeks after sanction.
Charlie Hustler, co-founder at Elder, says: “Greyfriars House was an opportunity we simply couldn’t ignore. Its location in the heart of Reading, just minutes from the station, combined with the growing demand for co-living accommodation, makes it a compelling redevelopment project.
“The experience of working with STB has been seamless from the outset. What stood out was the ease of communication, the responsiveness of the team and the speed at which the transaction progressed.
“Having a lending partner that understood the opportunity and could move quickly was incredibly valuable, and we look forward to working together again in the future.”
Mike Feasey, head of bridging at Secure Trust Bank Business Finance, who led the deal, says: “Greyfriars House represents an exciting opportunity to bring a prominent town centre building back into productive use and support the growth of co-living in Reading.
“Land bridge facilities play an important role in helping developers reposition assets and prepare sites for their next stage of development.
“The professionalism of everyone involved helped the deal progress smoothly, enabling us to provide a funding solution that gives the joint venture flexibility as it evaluates the best long-term outcome for the site.”
John Griffin, commercial director at Secure Trust Bank Business Finance, adds: “Today’s borrowers need more than just funding. They need a trusted partner that understands their transaction and can support them through each stage of the property lifecycle.
“This deal demonstrates the value of combining specialist real estate expertise with a relationship-led approach, ensuring clients have the flexibility and support they need to progress their projects with confidence.”
