UK finance provider Assetz Capital has agreed a development facility of 5.5 million pounds for a residential development in Liverpool. The funds provided will be used for the conversion of a currently vacant former college building in the Woolton district. A total of 18 residential units are to be created on the site as part of a mixed residential scheme.
The loan facility has been agreed for a term of 18 months and features a loan-to-value ratio of around 58 per cent. The capital is earmarked for the upcoming demolition work on the conversion site and the subsequent new construction of the buildings.
Key financing figures for the Woolton site
The conversion of the former educational institution revitalises disused building fabric in an established residential area in south Liverpool. The measure includes both the selective dismantling of unviable structures and new-build works to create contemporary living space on the existing plot.
- —Financing volume: 5.5 million pounds through Assetz Capital
- —Loan terms: 18-month term at around 58 per cent loan-to-value (LTV)
- —Construction project: Demolition and new build to create 18 flats
- —Location: Woolton, Liverpool (conversion of a former educational facility)
Importance of flexible financing structures in housebuilding
In the current UK market environment, structured development loans with manageable terms form a key foundation for private conversion projects. Lenders such as Assetz Capital focus on supporting schemes where developers need to prepare existing properties at short notice and execute them through to shovel readiness.
The chosen structure of almost eighteen months' duration and a moderate leverage ratio is aligned with the complete construction cycle up to the completion of the 18 units. Following the conclusion of the demolition and construction phase, the scheme is expected to add new capacity to the local housing market.
