Assetz Capital has launched a Planning Assistance Loan product, aimed at supporting the conversion of commercial buildings into residential dwellings.
The product was designed to help experienced property developers acquire commercial buildings, with the intent of securing residential, purpose built student accommodation (PBSA), or private rental sector (PRS) planning permission for onward redevelopment during the period of the loan.
There will also be an option to convert the facility into a new refurbishment loan upon gaining successful and implementable planning permission.
With a new 10.5% fixed launch rate, the Planning Assistance Loan scheme aims to support developers following a period of significant interest rate volatility.
Assetz Capital will deploy a further £100m over the next two years to property developers through the scheme.
The product will also allow Assetz Capital to become more involved in supporting the repurposing of under-utilised commercial spaces in city centres.
The team has already supported a number of experienced developers over the past few years, having created more than 955 new beds, with gross debt of over £54m in conversions of offices to PBSA developments alone.
Andrew Fraser, CCO at Assetz Capital, said: “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.”
