Secure Trust Bank takes its cue from the Budget to launch £100m property fund

SOLIHULL-based Secure Trust Bank has launched a £100m property conversion fund, aimed at boosting levels of commercial to residential development.
 
The AIM-listed challenger bank has made the announcement on the back of the Government’s commitment to create a £1bn brownfield regeneration fund aimed at creating an additional 275,000 affordable properties.

In addition, the Government has also pledged to provide a 90% acceptance quota for residential planning permission by 2020.
 
This fund adds to Secure Trust Bank’s real estate finance arm, which advanced more than £135m of funds to customers last year by financing a number of residential and commercial property development projects across the UK.

Launched in July 2014, the team is headed up by managing director Kevin Venn and operates across the country..
 
Over the past few months, Secure Trust Bank has funded a number of commercial to residential projects. This includes working with developer Grainmarket Properties on a £6.4m internal reconfiguration scheme in Slough to transform a redundant office space into 54 apartments.

In addition, the firm has provided £4m to York Capital Management to convert three upper floors of retail space into 28 flats.
 
Paul Marston, managing director at Secure Trust Bank Business and Commercial, said: “With the Government pledging to address the housing shortage through a number of new brownfield initiatives, the next few years will be an extremely exciting period for real estate development.
 
“The market is continuing to see an increased appetite from property developers looking to revitalise unloved suburban areas with innovative new commercial to residential schemes.

“This new fund will diversify our offering and help to boost the volume of affordable and high-spec residential developments in cities and out-of-town locations across the UK.”