Manchester-based lender Assetz Capital has introduced a new Planning Assistance Loan aimed at aiding the conversion of commercial buildings into residential spaces. This loan targets experienced property developers seeking to acquire commercial properties and secure residential, PBSA, or PRS planning permission for redevelopment.
The scheme offers an option to convert the facility into a Refurbishment Loan upon obtaining successful planning permission. The loan comes with a fixed rate of 10.5% and plans to deploy £100 million over the next two years to support developers amid interest rate fluctuations.
Assetz Capital's initiative also aims to repurpose under-utilized commercial spaces in UK city centers. The company has previously supported developers in creating over 955 new beds, converting offices into PBSA developments with gross debt exceeding £54 million.
This product launch coincides with Assetz Capital's expansion, including a £200 million extension of its lending partnership with Aros Kapital.
Andrew Fraser, CCO at Assetz Capital, stated: “At Assetz Capital, we are always looking for areas where we can continue to increase the support we provide to property developers across the UK. This new product will provide £100m of funding to developers in acquiring commercial property with a residential conversion focus over the next two years. We will consider commercial properties with clear residential-led development potential. We want to support realistic projects and be part of the larger repurposing of city centres across the UK.”
He added: “Assetz Capital has been heavily involved in some fantastic repurposing schemes, such as turning old office or warehouse facilities into modern, vibrant, and much needed housing stock, with a core optic being in the student space, but not exclusively. There is vast amounts of opportunity to convert these underutilised commercial sites in our city centres, so we’re excited to be part of the solution to drive residential development over the coming years.”