Investec arranges £54.6 million loan for two office to residential conversion projects

Investec Bank plc (Investec), a leading international financial services provider, announces that its Real Estate team has provided Signal Capital Partners, a London-based private asset management firm, with a £54.6 million club facility secured on two former offices which Signal has converted into Build to Rent (BTR) assets. The loan has been arranged in partnership with Allied Irish Banks (AIB), the Irish financial services group and long-standing Investec partner.

Sutton Park House, in Sutton, Southeast London, occupies a prime town centre location, adjacent to the train station, and comprises 149 BTR units. Residents benefit from a range of shared amenities including co-working spaces, a gym and wellness centre, residents’ lounge, cinema room and rooftop terraces. The scheme includes 46 affordable homes, offered at discounted rents, supporting local affordability targets and aligning with the owner’s ESG commitments.

In Aylesbury, a popular commuter town less than one hour’s train journey from London Marylebone station, the redevelopment of empty office space delivers 161 modern apartments. This project forms a key part of the town’s wider £5 million regeneration initiative, aimed at revitalising the town centre and bringing underutilised buildings back into productive use.

Sebastian Walley of Investec’s Real Estate team, commented:

“These projects directly address the critical undersupply in the UK of high-quality rental homes in well-connected urban locations, as well as the acute requirement for more affordable housing. Whilst not always possible, transforming existing buildings is significantly more carbon friendly than ground up development, and this approach typifies our commitment to supporting sustainable urban regeneration and our ability to structure creative, flexible solutions to meet complex borrower requirements.” 

Henry Gray at Signal Capital Partners, added: 

“Securing this loan marks a significant milestone for our Build to Rent strategy in the UK. The successful refinancing follows strong market interest and competitive terms provided by a number of potential lenders. This was our first transaction with Investec, who proved a reliable partner and demonstrated a commercial approach throughout the execution process. We look forward to working with their team on other opportunities in the future.”

Investec seeks to partner with clients in their efforts to reduce carbon emissions by lending to projects that contribute to a transition to a lower-carbon economy. This focus reflects the bank’s ambition to promote sustainable growth and environmental responsibility, as well as its intention to work towards its Net Zero goals by 2050. These goals are enabled through activities including sustainable and transition finance and encouraging clients to pursue decarbonisation efforts.