OakNorth Bank has provided £11.4m financing to Ocea Group,a property developer which specialises in commercial to residential property conversions – primarily office buildings into apartments – under permitted development rules.
The finance will be used will be used to convert Furness House in Redhill, Surrey, which is currently a four storey office building. The site close to Redhill railway station will be converted into 66 one bedroom and five two bedroom flats.
Glenn Delve, Director at
Ocea, comments: “With plenty of local amenities on offer, as well as excellent
transport links to and from London,
Redhill is extremely popular amongst families, young professionals and
downsizers. Furthermore, the majority of units on offer in Furness House will
qualify for the help to buy scheme, making them ideal for the first-time buyer
“We’re delighted to be
partnering with OakNorth on what is our largest project to date – the team are
extremely well-versed in the property sector and were able to structure a
facility that suits our needs.”
Commercial to residential conversion has proved to be a growth area since 2013 when permitted development rules to enable it were introduced. This is a particularly interesting project, however, both for its size and scale and the fact it is a conversion pitched at the London commuter market.