Recognise Bank has provided a £1.5 million bridging loan for the acquisition of a multi-building commercial property in Canterbury, Kent, comprising several interconnected terraced properties including Grade II listed buildings and a 1950s office block.
The 15-month facility was arranged through Commercial Finance Brokers at 68.41% loan-to-value and supports the purchase of a partially tenanted asset. The borrower plans to seek planning permission to convert upper floors to residential use whilst improving the commercial tenant mix across the scheme.
Complex structure
The transaction required detailed assessment due to multiple factors, including a below-market-value purchase price and an existing planning moratorium affecting the development timeline. The listed status of some buildings within the asset added further complexity to the proposed conversion plans.
Similar refurbishment funding arrangements have been used by investors seeking to reposition commercial assets. The structure allows time for planning consent to be obtained, with an intended exit through development finance once permissions are secured.
Heather Mitchell, lending manager at Recognise Bank, said: “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.”
Kipp Noble of Commercial Finance Brokers noted the deal involved “a mix of listed and more modern buildings, alongside planning considerations that required a lender willing to take a pragmatic view.”
Market context
The transaction reflects continued activity in the commercial-to-residential conversion sector, despite regulatory constraints in some conservation areas. Mixed-use developments combining heritage buildings with modern structures present particular challenges for portfolio investors seeking flexible financing solutions.
The deal was completed within the required timeframe following coordination between the lender, broker and borrower. Recognise Bank’s lending and operations teams supported the transaction alongside Mitchell.
