Recognise Bank has completed an £801,500 bridging loan to support the acquisition of a mixed-use Victorian property in Liverpool, with the borrower planning a phased redevelopment culminating in a residential conversion of up to 45 apartments.
The borrower, an experienced property developer operating via an SPV, is a repeat client of the bank. The transaction marks the fourth completed deal between the two parties.
The asset is a four-storey Victorian building previously used as office accommodation alongside a 30-bed hostel, with associated car parking. Planning permission has been secured to convert part of the building into a 34-bed HMO, while retaining elements of the existing hostel and mixed-use configuration. The borrower intends to progress that business plan before seeking to amend planning consent post-completion to deliver the larger residential scheme.
The facility was structured as a 12-month bridging loan at 70% LTV and was introduced by Mark Jerman of Watts Commercial Finance.
The transaction required careful assessment given the scale of the building, its mixed-use history and the borrower's phased development strategy. The combination of existing use, permitted planning and proposed future changes meant the structure needed to support both the immediate acquisition and the longer-term exit.
"This was a perfect example of how we support experienced developers with assets that have multiple potential uses and evolving planning strategies," said Paul Bagan, lending manager at Recognise Bank (pictured).
"The property combines an existing income-generating use with a clear repositioning opportunity, and the borrower has a proven track record of delivering similar schemes. We took a pragmatic view of both the current asset and the future plans, ensuring the structure worked for the acquisition while providing flexibility for the next stage of the project.
"Having worked with the borrower on several previous transactions, we were able to move efficiently and with clarity, maintaining close communication with the broker throughout to ensure the deal progressed smoothly."
The bridging loan Liverpool completion drew on the bank's familiarity with the borrower's track record, with the team aligning the facility to the developer's experience and delivering within the required timeframe to support the purchase.
Jerman echoed the importance of lender decisiveness on a deal of this complexity. "This asset was complex, with many moving parts, so it was important to work with a lender that could look beyond the current use and understand the borrower's future plans," he said.
"Recognise Bank gave us clarity from the very start and took a decisive view on how the transaction should be structured. That certainty is exactly what brokers need when trying to move cases like this forward."
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
