LendInvest has completed a £3.51 million development finance facility for the conversion of a former NHS building in Bromley into 16 residential flats, closing the transaction in 6.5 weeks to meet contractual deadlines.
The project will transform the vacant structure on the former NHS site into residential units. The facility was structured at 65% loan-to-gross-development-value over an 18-month term, with the developer planning to exit through individual unit sales.
Accelerated timeline
The transaction moved from initial application to completion in 6.5 weeks, significantly shorter than typical development finance timelines. According to Steve Larkin, managing director for development at LendInvest, the compressed schedule was driven by strict deadlines imposed by the NHS.
“Given the tight deadlines imposed by the NHS, getting this deal completed in 6.5 weeks truly is a testament to the team’s agility and the strength of our relationship with the developer,” Larkin said.
The facility represents the second development loan LendInvest has provided to the same developer. The lender operates across England, Scotland, and Wales, focusing on SME developers requiring rapid deployment of capital.
Conversion activity
The Bromley transaction adds to ongoing activity in the property conversion sector, where developers are repurposing non-residential buildings into housing stock. Converting vacant commercial and public sector properties has become a common strategy for addressing housing supply constraints.
Development finance for conversions typically requires lenders to assess both the existing structure and end-use viability. The 65% LTGDV ratio indicates a moderately conservative lending position relative to the projected gross development value of the completed units.
The 18-month term aligns with standard timelines for conversion projects of this scale, though actual delivery schedules can vary based on planning conditions and construction complexity. Developers in the current market are also navigating shifting financing conditions as interest rate expectations evolve.
LendInvest did not disclose the interest rate or specific fee structure for the facility. The developer’s identity was also not revealed in the announcement.
