Downing has provided £18.4 million in development finance to a regional developer for the conversion of the former Princess Helena College at Temple Dinsley in Preston, Hertfordshire, into 40 apartments and three houses.
The financing, arranged by Downing’s private credit team and led by investment director Will Powell, will support the restoration of the Grade II* listed main building alongside the construction of 24 new-build homes within the surrounding grounds.
Listed building conversion
The historic main building was designed by British architect Sir Edwin Lutyens. The site is located in Preston village, south-west of Hitchin, with access to Hitchin and Stevenage railway stations, both offering direct connections to central London.
According to Powell, the transaction represents a typical deal for Downing’s private credit team. “Projects involving listed buildings can be complex and not without risk, but our knowledge of the customer’s exemplary track record in this field helped us to understand the scheme and its approach to preserving the character and original features of the former college,” he said.
Development finance market
The loan comes as the property industry seeks clarity on funding conditions for residential schemes. Development finance has become increasingly selective, with lenders focusing on projects with proven delivery teams and clear exit strategies.
The Temple Dinsley project adds to the growing number of heritage building conversions being financed in the current market, as developers seek sites with planning permission already secured. Such schemes have attracted attention from private credit providers as traditional buy-to-let investment faces challenges.
The development is expected to deliver 43 residential units in total across the restored college building and new-build homes in the grounds. No completion timeline was disclosed.
