Conversion project completes thanks to funding

AN £850,000 loan from Lloyds Bank Commercial Banking has helped a property developer in Sheffield complete a conversion project.

The conversion of an old Methodist Chapel in the city into modern apartments,
Sycamore Estates was established by Paul Singh, who began building a private property investment portfolio 15 years ago. Having originally focused on purchasing residential properties for letting, the company began to branch into property development around seven years ago, which after the completion of several other projects led to the purchase of the Birley Carr Methodist Chapel on Fox Hill Road earlier this year.

The former derelict chapel has now been converted into 14 one and two-bedroom residential apartments, which were all let soon after completion of the project, mirroring the business’ overall occupancy rate of around 98%.

Mr Singh approached Lloyds Bank Commercial Banking for the Government-backed Funding for Lending Scheme (FLS) loan to purchase the building, having received similar support for previous expansion projects.

The addition of the Birley Carr chapel will bring the number of residential units the company owns to 150, and is expected to boost its current turnover of around £750,000 by up to 10%.

Mr Singh said: “The Birley Carr chapel is a landmark building in the local area and was quite a different development to anything that we have done before, but restoring it to its former glory has been an immensely satisfying experience and it looks set to be one of our single most popular properties.

“While the past few years have been a difficult time for much of the UK property market, it has offered a large number of opportunities for any firms looking to purchase and hold-on to rental properties rather than those looking to sell them on.

“The support from Lloyds Bank Commercial Banking to help us secure this and previous investments has been instrumental in laying the foundations for our future growth.”

Ken Davies, SME banking relationship director, Lloyds Bank Commercial Banking, said: “Sycamore Estates’ new property is a superb addition to the company’s portfolio, being both visually attractive and already in high demand with tenants.

“The business’ growth in what is a highly competitive sector is a credit to Paul’s acumen and hard work, and by working closely with the company over the past few years we have been able to put in place the best lending packages to help its expansion.

“As part of our commitment to helping SME property firms to thrive and expand we have committed £5bn to SMEs through the FLS since September 2012.”