Avamore Capital has provided a £1.49m refurbishment loan for the conversion of office space into four residential flats, working with a repeat borrower on a leasehold development project.
The facility supports the redevelopment of a leasehold unit within an existing office building. The project involves converting internal space into residential use, with structural and planning considerations typical of leasehold developments.
Repeat borrower relationship
The borrower previously completed a similar conversion on another floor of the same building. This track record informed the lender’s underwriting approach for the latest phase.
The funding structure includes a development facility that the borrower can access if required, although they plan to finance the refurbishment works independently. This arrangement provides flexibility to draw on additional funds during the project if circumstances change.
Tom Morrissey, relationship manager at Avamore Capital, managed the transaction alongside underwriter Spencer King. “Having worked with the borrower previously, we understood both the asset and their approach, which made structuring the facility much more straightforward,” Morrissey said.
The deal follows other recent office-focused financing transactions in the UK market, as lenders continue to support property conversions amid changing workplace patterns.
Adam Butler, director of sales and marketing at Avamore Capital, noted that Morrissey originally introduced the opportunity in his previous role as a land agent before joining Avamore. “His move to Avamore has allowed him to stay close to the transaction and support the borrower all the way through to completion,” Butler said.
The transaction adds to recent specialist lending activity in the UK property development sector, where relationship-based financing continues to play a role in smaller-scale conversions.
The loan completion reflects ongoing demand for development finance in the office-to-residential conversion market, as developers seek to repurpose existing commercial space for housing.
