A vacated 1980s office block in Newbury has been reinvented as a collection of high-quality apartments, with Secure Trust Bank (STB) Real Estate Finance delivering a £28.7m bridging loan for the property investment deal.
The two-year facility was structured for LD Rent Co 1, a subsidiary of a global investment firm with over $11bn under management, following its acquisition of Bond House in Newbury. Formerly known as Bayer House and serving as the headquarters of Bayer plc until 2015, the property has been converted into 191 high-quality studio, one- and two-bedroom units.
STB's loan was designed specifically for the borrower as a 'stabilisation facility', under its newly launched bridging finance product portfolio. The loan has since been switched to a residential investment loan product, with the Borrower intending to hold the asset for the duration of the loan and beyond.
The partnership marks the first time that the bank and borrower have worked together, and despite there being some challenges with planning permission and building regulations, the deal completed in just 37 days, from first enquiry to drawdown.
AJ Shazad and Tom Laslett advisors to LD Rent Co 1, said: "We are very pleased to have been able to complete on Bond House and bring these apartments to market, at a time where quality rental properties are in high demand.
"The exemplary speed, flexibility and expertise in bespoke finance requirements from Secure Trust Bank is what really stood out for us during this transaction. The team and their professional partners went above and beyond to enable the deal to go ahead in a little over a month, and the relationship and trust is what we really valued above all else."
The funding was led by Ben Hodis, head of origination and Alasdair Bowers, relationship manager at Secure Trust Bank.
On the deal, Ben said: "It is great to have been able to support on this unique development. This particular bridging loan is a perfect example of how our flexible finance solutions can transform disused commercial offices and give them a new lease of life. We're pleased to see the building revived, and Bond House is now a great place to live, especially for professionals and those who work from home, given its vibrant, communal workspaces."
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