Hampshire Trust Bank (HTB) has delivered a £16.3m development loan facility as part of a build-to-rent development project, repurposing the Sutherland House office building in Coventry into over 100 new homes.
Located near Foleshill Road and Coventry Canal, the project will contribute to the regeneration of the local area.
Once complete, the development will consist of 57 one-bedroom apartments, 42 two-bedroom apartments and three studio apartments, alongside a reception area and residents lounge, as well as parking and bike storage facilities.
The project is being undertaken by real estate development and investment firm MCR Property Group and will be retained and operated under the MCR Homes Brand, with work expected to be completed by early 2025.
HTB provided a £16.3m residential development facility for the project, across a 15-month term. It has been structured at 65% of gross-development-value (GDV).
David Tracey, chief operating officer, from MCR Property Group, said: “We are delighted to partner with HTB on this ambitious and transformative project.
“Their expertise and deep understanding of the build-to-rent sector have been instrumental in realising our vision for Sutherland House.
“As we convert this iconic building into a modern rental community, we are not only meeting the increasing demand for high-quality housing in Coventry but also playing a key role in the revitalisation of a significant area.
“This development will deliver much-needed homes and make a lasting positive impact on the local community.”
Andrew Dignum, lending director, development finance at Hampshire Trust Bank, added: “This is our first collaboration with MCR Property Group, marking the beginning of what we anticipate being a successful relationship.
“Working with such a high-quality partner shows our drive and capability to lend within this growing subsector of the UK property market.”
Neil Leitch, managing director of development finance at Hampshire Trust Bank, said: “We actively look for opportunities in the regional build-to-rent market, understanding the crucial role it plays in addressing the UK’s housing shortages.
“This project not only breathes new life into a historic landmark but also contributes to the regeneration of Coventry, underscoring our dedication to supporting sustainable and impactful projects that benefit both residents and the wider community.”
