Large Bridging Loan for Grade II Listed Building

• Property: Grade II Listed building of more than 200,000 sq ft
• Site: Approximately 30 acres
• Acquired: 2020
• Proposed use: Mixed-use redevelopment including a technology hub and incubation space
• Finance: Two-year bridging facility
• Exit strategy: Property sale following enhancement of planning consents

Large bridging facilities can provide a flexible source of short-term finance for complex property projects, particularly where the underlying asset has significant development or planning potential. Enness was approached by a client seeking substantial bridging finance against a Grade II Listed building of architectural and historic interest.

Purchased in 2020, the imposing property comprises more than 200,000 sq ft of accommodation set within approximately 30 acres. The site offered significant potential for alternative uses, with plans being considered to secure enhanced planning consent for a mixed-use scheme.

The proposed plans included a technology hub and incubation space, alongside the potential for residential accommodation, a hotel, retail and restaurants. Data centre facilities were also being considered as part of the wider vision for the site.

The client required a two-year facility to support the progression of this project alongside other property interests. The proposed exit strategy was the sale of the property once the planning position had been enhanced, with the anticipated sale proceeds being used to repay the bridging facility.

The nature of the property and the proposed planning strategy meant that a conventional mortgage was unlikely to provide the flexibility required. The transaction required a lender prepared to consider the property’s existing characteristics, its potential future uses and the proposed planning-led exit.

Enness identified a well-established peer-to-peer lender that was prepared to support the project. The lender was attracted to the potential wider benefits of the proposed redevelopment and was willing to consider a bespoke two-year bridging structure.

The resulting facility was arranged for two years. The structure provided the client with additional time to progress the planning strategy and work towards enhancing the property’s value and future marketability.

The proposed redevelopment aimed to create a sustainable future for the site by unlocking the value of its military heritage while broadening its appeal as a strategic location for inward investment. The plans also contemplated opportunities for local people and organisations to play an active role in the future stewardship of the landscape and heritage.

The case demonstrates how large bridging loans can be used where a property has significant underlying potential but requires time to progress planning, development or a future sale. For complex commercial and mixed-use assets, the ability to present the full project strategy and proposed exit can be an important part of identifying suitable specialist finance.

Enness works with specialist lenders on substantial property transactions, including bridging facilities for complex commercial and development projects. The appropriate funding structure will depend on the property, proposed use, planning position, available security, borrower circumstances and the lender’s criteria.

Important: Bridging finance is short-term borrowing and requires a clearly defined repayment or exit strategy. Where an exit depends on planning consent or a future property sale, delays, changes in planning outcomes or market conditions may affect the anticipated repayment strategy and the overall cost of borrowing.

Read the UK version of this case study.