Funding deal unlocks PRS homes development
The transformation of a neglected office building into 27 quality affordable apartments is set to get underway after developer Key Land Capital secured funding for a Stafford scheme.
Funding for the £3.1 million office-to-residential development has been agreed with London-based peer-to-peer lender Blend Network.
The agreement enables Key Land Capital to start work on the private rental sector project this month.
Stafford Borough Council has given planning consent for the scheme, which should reach practical completion in the second quarter of 2021.
Known as The Foregate Building, the development will deliver high specification one and two-bedroom apartments, breathing new life into Image House – dilapidated office building, which has stood empty for more than three years.
Birmingham-based Key Land Capital is an investment and development business with a multi-million pound portfolio of developments across Birmingham and the West Midlands.
Chief executive Kevin Sharkey said: “Now that we’ve secured funding we’re excited at the prospect of commencing work on creating 27 quality, affordable homes to replace an unloved office building.
“We have been looking at Stafford as a great place to invest for some time. It is a growing town and has a strong demand for quality apartments in a central location, ideal for young professionals. The Foregate Building will offer good quality accommodation available at competitive rents. We can’t wait to get started.”
Paul Watson, head of origination at Blend Network, said: “We have agreed to fund a £1,950,000 total loan facility to finance the acquisition and redevelopment of an office building in Stafford into 27 residential apartments. This is a huge milestone for Blend Network and we are looking to build on this achievement and fund many more similar deals.”
Key Land Capital acquired the office building, known as Image House, in Foregate Street, in 2017. It is located opposite the Madford Retail Park and the former Stafford General Infirmary. The detached 12,146 sq ft building, originally purpose-built offices with on-site parking and ground floor retail units, was sold by a private developer with planning permission for conversion to residential use.
Key Land Capital is delivering residential projects worth more than £40m across the West Midlands. Its mission is to provide affordable, luxury and modern housing to students and professionals, whilst maintaining solid returns for investors. The company raises private investment to develop sites throughout the Midlands, a mixture of residential new-build and office to residential conversions.
