United Trust Bank has provided £15.6 million in development finance to convert two redundant buildings in south-west London into 92 supported living units for vulnerable adults.
The facilities have been provided to Public Housing Ltd, an existing customer of the lender. The two schemes have a combined gross development value of £26.5 million.
Facility structure
The first facility comprises a £6.5 million, 15-month loan to refinance an existing bridging loan and fund the conversion of a former care home into 28 en-suite units. The scheme will include counselling rooms, communal breakout areas and shared facilities within the existing building footprint.
The second is a £9.1 million, 24-month loan to fund the acquisition and conversion of a former convent into 64 en-suite units. The completed development will include shared kitchens, communal facilities and dedicated space for 24-hour support staff.
Both conversions require no change of planning consent, reducing planning risk. The approach contrasts with ground-up development, which typically faces longer timelines and greater regulatory scrutiny.
Market context
The transaction comes as demand for specialist supported living accommodation continues to grow. The sector has seen increased activity from developers seeking to repurpose existing buildings for social housing uses.
Daniel Carlisle, senior director of property development at United Trust Bank, said: “This was an excellent opportunity to support an experienced developer delivering high-quality supported living accommodation in a sector where demand continues to outstrip supply.”
Chris Wilson, director of Public Housing Ltd, commented: “Our objective is to create high-quality supported living environments that provide vulnerable adults with safe, modern accommodation designed around their long-term needs.”
The development finance sector has seen fluctuating mortgage approval levels in recent months, though specialist lending for supported housing has remained relatively stable. United Trust Bank’s transaction demonstrates continued appetite for property sector investment in niche accommodation categories.
Both projects are expected to complete within their respective loan terms, with the former care home conversion scheduled for 15 months and the convent conversion for 24 months.
