United Trust Bank has completed a £3.7 million commercial bridging facility for the acquisition of a former public house in Hendon, North London, which is planned for redevelopment into co-living accommodation.
The facility was provided to a special purpose vehicle formed by investor-developers including Bernard Margulies, director of BMR Property Group, to fund the off-market purchase of The Hendon pub. The transaction was completed within a two-week timeframe, with the acquisition proceeding before planning approval had been secured.
Transaction details
The bridging loan totalled £3.7 million including a VAT loan component, with a 12-month term and a day one loan-to-cost ratio of 75%. UTB based its lending decision on the existing use value of the property.
Daniel Carlisle from United Trust Bank’s property development team met with the borrowers on site two weeks before the target completion date. The proposal was prepared and progressed through the bank’s credit approval process within the following week, enabling funds to be released in time for the purchase.
Development plans
The scheme, which has since received planning approval subject to Section 106 agreement, involves demolishing the existing building and constructing a public house alongside 76 co-living apartments with co-working space. The development will range from three to five storeys and has an estimated gross development value of approximately £25 million.
According to Margulies, the transaction required a quick turnaround to secure the off-market opportunity. UTB is now in discussions to provide development finance for the construction phase of the project.
Carlisle noted that acquiring sites ahead of planning approval carries risk, stating that UTB’s approach focuses on “the strength of the sponsor, the quality of the opportunity, and the work already undertaken to de-risk the planning process.”
Market context
The transaction reflects a growing trend of specialist lenders providing short-term finance for off-market property acquisitions in London, particularly for schemes involving alternative residential formats such as co-living. The two-week completion timeframe is notably compressed compared to standard commercial property transactions, which typically require several months for due diligence and approval processes.
