SDKA has completed a complex £200,000 commercial bridging loan into a Small Self-Administered Scheme (SSAS) pension fund, securing the redevelopment of a Grade II listed former school in Leicester.
The collection of historic buildings had stood derelict for 20 years before work began to convert them into six unique detached offices. The developer, having already invested significant personal funds into the scheme, needed additional capital to complete the final stages of the project.
A long-running refinance application with a major high street bank had stalled because the bank would only value the three completed units, as certain planning permissions remained outstanding. SDKA stepped in to lend against the whole site instead, with unit four nearing completion at the time of the loan.
To release funds directly into the SSAS, the lender carried out trustee consent and detailed legal due diligence, working closely with pension trustees and legal advisers to review the trust structure and documentation. Andrew Carmichael of Ratio Law provided legal oversight throughout.
The bridge was completed in just 15 working days, with the loan finalised at 1.1% per month over an eight-month term. Exit will be achieved through further refinance once the development is complete.
"Despite the complexities associated with a Grade II listed redevelopment, the pension fund borrowing structure and commercial asset class, our team moved swiftly from application to completion to ensure no delays in the redevelopment process," said Kunal Mehta, managing director of SDKA.
"To assess all of the associated details and release the funds in only 15 days highlights our expertise in structuring commercial bridging finance solutions and supporting borrowers through complex lending scenarios where traditional funding routes may prove problematic."
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