A £200,000 bridging loan has been secured by a developer to complete the transformation of a historic Grade II listed former school in Leicester into six detached office units. The site had lain derelict for two decades before works began, and the additional funding will help finish the development.
The project's high street bank backing had fallen through due to valuation issues, with only three completed units valued because of outstanding planning permissions for the remaining properties. However, bridging finance provider SDKA agreed to lend against the entire site, despite four units being incomplete at the time of the loan agreement.
A Small Self-Administered Scheme (SSAS) pension fund was used to structure the bridging loan, requiring trustee consent and thorough legal due diligence. This approach highlighted the flexibility of alternative financing solutions for complex property developments.
The transaction was completed in 15 working days from application to completion, with the developer aiming to exit the bridging finance through a traditional refinancing arrangement once the entire development is finished.
SDKA's managing director Kunal Mehta said: “We moved swiftly from application to completion to ensure no delays in the redevelopment process” despite the complexities associated with the project. The case highlights ongoing challenges developers face in securing finance for part-completed projects, especially those involving heritage properties.