A vacated 1980s office block in Newbury has been transformed into 191 high-quality residential units, supported by a £28.7m bridging loan from Secure Trust Bank (STB) Real Estate Finance.
The two-year facility was arranged for LD Rent Co 1, a subsidiary of a global investment firm managing over $11bn in assets, following its acquisition of Bond House. Previously known as Bayer House and serving as Bayer plc’s headquarters until 2015, the property has been converted into studio, one- and two-bedroom apartments.
STB structured the loan as a ‘stabilisation facility’ under its newly launched bridging finance portfolio. The loan has since transitioned into a residential investment product, with the borrower intending to retain the asset for the duration of the loan and beyond.
The transaction marked the first collaboration between the bank and borrower. Despite challenges with planning permission and building regulations, the deal completed in just 37 days from initial 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 are what we really valued above all else.”
The funding was led by Ben Hodis, head of origination, with support from Alasdair Bowers, relationship manager at Secure Trust Bank.
Ben Hodis added, “It is great to have been able to support 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.”
