Shawbrook Bank has provided £2.5 million in development finance to APS Homes for the conversion of a Grade II listed former nursing home in Bath into seven residential apartments.
The facility supports the redevelopment of Oakfield House, an 1857 building situated on approximately 1.2 acres located two miles from Bath city centre. The 18-month financing arrangement covers 100% of development costs, with the scheme approaching completion and carrying an estimated gross development value of approximately £5 million.
Listed building complexities
The project required a lender with experience in conservation requirements associated with listed properties. South West Business Finance introduced the transaction, with Shawbrook working with the developer on planning considerations specific to the site.
The financing structure includes a day-one advance for expenditure already incurred on planning, reports and site preparation. APS Homes, which operates across Bristol and Bath, selected Shawbrook based on its track record with complex listed building projects.
“Converting a listed building comes with additional challenges, so it was important to work with a lender that understood our ambition and could take a practical approach,” said Richard Pratt, managing director at APS Homes.
Development finance market context
Greg Pescott, relationship director for development finance at Shawbrook, noted the project demonstrates the application of specialist expertise on complex schemes. “The listed status brought additional considerations, so it was important that we understood the project and worked closely with APS Homes and South West Business Finance to keep things moving,” Pescott said.
The transaction comes as England property listings have shown increased activity in recent months, though UK house price growth has moderated to 1.4% amid broader market concerns.
The Bath project represents a segment of the development market focused on heritage property conversions, which typically require longer timelines and specialist financing due to conservation requirements and planning restrictions associated with listed status.
