Real Estate Advisory team completes £1.43m bridge to convert Grade II listed Swansea smelting shed into 12 homes

The 18-month heavy refurbishment bridge funds the conversion of a former smelting shed at Swansea’s historic Upper Bank Works into 12 apartments to let.

Background

The borrower planned to convert a Grade II listed former smelting shed, part of the Upper Bank Works founded in the mid-18th century, into 12 apartments to let on a buy-to-let basis. The building has a footprint of around 600 sq m, and before any homes could follow it had to be repaired and adapted within conservation requirements.

Few lenders have the appetite for a listed building. Specialist valuations and additional checks are often needed, resale can be harder if a loan runs into difficulty, and energy efficiency standards can be harder to meet where conservation rules limit changes, which matters for homes intended to be let. A former smelting site adds environmental and contamination risk on top.

Action

Led by Finance Advisor Sam Beaumont, the team worked through the market to find a lender willing to back the scheme. With plenty to resolve between valuation and completion, Sam stayed close to everyone involved to answer the lender’s questions early and keep the transaction moving.

Key features of the facility include:

• A £1.43m heavy refurbishment bridge over an 18-month term
• Structured at 65% LTV
• Funding the conversion of a listed building of around 600 sq m into 12 apartments
• Placed with one of the few lenders prepared to take on a listed, former industrial building
• Supporting the borrower’s plan to let the completed apartments on a buy-to-let basis

Outcome

The facility funds the stage that has to come first on any listed conversion: repairing and adapting the building within its conservation requirements. Once the works are complete, a structure that has stood since Swansea’s copper-smelting era will provide 12 high quality homes to let.