United Trust Bank (UTB) has provided £15.6m of development finance to deliver 92 supported living units across two schemes in South-West London.
The facilities have been provided to existing UTB customer Public Housing Ltd and will fund the acquisition, refinancing and redevelopment of two redundant properties into accommodation for vulnerable adults.
Together the projects have a combined gross development value (GDV) of £26.5m.
The funding comes against a significant shortage of supported accommodation. Government-commissioned research estimates England needs between 157,100 and 336,500 additional supported housing units to address unmet need.
The Supported Housing Review also found 86% of local authority commissioners expect demand for supported housing to increase over the next five years.
REDUNDANT BUILDINGS REPURPOSED
UTB’s first facility comprises a £6.5m, 15-month development loan which will refinance an existing bridging facility and fund the conversion of a former care home into 28 en-suite supported living units.
The development will include counselling rooms, communal breakout areas and shared facilities within the existing building.
A second £9.1m facility, running for 24 months, will support the acquisition and conversion of a former convent into 64 en-suite units.
No change of planning consent is required for the second project, reducing planning risk. The completed development will include shared kitchens and communal facilities alongside dedicated space for 24-hour support staff.
The schemes reflect a wider government push to increase specialist and supported housing provision, with the new Social and Affordable Homes Programme specifically targeting additional accommodation for older, disabled and vulnerable people.
Daniel Carlisle, senior director – property development at United Trust Bank, says: “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.”
‘LASTING SOCIAL VALUE’
Chris Wilson, director of Public Housing Ltd, says: “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.”
