Large development, Birmingham
The funding supported the acquisition of a strategically located semi-commercial asset in Birmingham, giving the borrower the flexibility and speed required to purchase the property prior to setting up development finance to undertake the proposed conversion works. The borrower plans to transform a former office building into a high-quality residential block of flats comprising 75 apartments, including 42 x 1-bedroom and 33 x 2-bedroom units. Full planning permission has already been obtained before completion, enabling the borrower to move forward with the next phase of the project.
Amount Funded:
£1.6m
PRoduct type:
Commercial Bridging
Term:
7 months
property:
Commercial office
exit:
Refinance
The development is expected to deliver much-needed modern housing accommodation in a well-connected and highly desirable part of Birmingham. Birmingham is the UK’s second city, a national and global hub, and is also one of the fastest growing cities in the UK, experiencing a prolonged period of growth and investment. The property occupies a prime location in Edgbaston, one mile west of Birmingham City Centre. Edgbaston Village offers a vibrant mix of retail, leisure, dining, residential and commercial amenities, making the location particularly attractive to tenants. The building was constructed in the late 1950s and sits on a 1.38-acre site (62,622 sq. ft). The property extends across a basement, ground, and five upper floors, benefits from 104 car parking spaces and remains in good structural condition. It also retains some distinctive original features, including high-quality green slate front elevation, black slate window sills, and unique faïence tile cladding to the rear. The property benefits from excellent transport links with nearby rail stations providing direct access to major UK cities, including London, Bristol, Liverpool and Manchester, alongside convenient access to the motorway network. The HS2 project is also the UK’s single most significant infrastructure project, with Birmingham at its very heart.
The borrowers are experienced developers known to B&W, with a strong track record in residential conversion projects. Operating as a father-son team, the business is currently undergoing a structured succession process, with the son assuming responsibility for the majority of the portfolio and future development pipeline. The father built a substantial property portfolio over a number of years, alongside several other entities and business interests, which have supported the funding and acquisition of the projects. As part of the succession strategy, he plans to gradually step back from day-to-day operations following the completion of several ongoing ground-up development projects.. Together, they have successfully delivered many similar schemes, executing both refinance and sale exits across previous developments.
The anticipated exit strategy is through refinance onto a development facility, either with B&W or another lender, although the borrower may consider a sale depending on the market conditions and project performance at the time. The transaction required a highly responsive and solutions-focused approach, with the deal structured and completed on a tight timeframe. Funding was deployed across 3 separate facilities against a single asset within 24 hours. This project demonstrated B&W’s ability to deliver flexible funding solutions within a tight timeframe for experienced developers, while supporting the delivery of a large scheme that contributes positively to the local community.
