Secure Trust Bank has launch a £100m Property Conversion Fund dedicated to boost the levels of commercial to residential refurbishment.
The AIM-listed challenger bank has made the announcement on the back of the Government’s commitment to create a £1bn “brownfield regeneration fund”, aimed at creating an additional 275,000 affordable properties.
In addition, the Government has also pledged to provide a 90 per cent acceptance quota for residential planning permission by 2020.
This fund adds to Secure Trust Bank’s Real Estate Finance arm, which advanced over £135m of funds to customers last year by financing a number of residential and commercial property development projects across the UK.
Over the past few months, Secure Trust Bank has funded a number of commercial to residential projects. This includes working with developer Grainmarket Properties on a £6.4m internal reconfiguration scheme in Slough to transform a redundant office space into 54 apartments. In addition, the firm has provided £4m to York Capital Management to convert three upper floors of retail space into 28 flats.
Paul Marston (pictured), managing director at Secure Trust Bank Business and Commercial, said: “With the Government pledging to address the housing shortage through a number of new brownfield initiatives, the next few years will be an extremely exciting period for real estate development.
“The market is continuing to see an increased appetite from property developers looking to revitalise unloved suburban areas with innovative new commercial to residential schemes. This new fund will diversify our offering and help to boost the volume of affordable and high-spec residential developments in cities and out-of-town locations across the UK.”