Our work speaks for itself.Development Finance for Mixed-Use Pub Conversion to Residential & Retail Refurbishment
Development finance arranged to support the conversion of a former public house into a mixed-use residential and retail scheme
The situation
An experienced property investor approached Expert Finance with a redevelopment opportunity involving a former public house and events venue in an established market town location.
The property had been acquired in August 2023 for £250,000 as a distressed purchase and was held unencumbered within a special purpose vehicle. Following an extensive planning process over 18 months, full consent had been secured to transform the site into a mixed-use scheme.
The approved plans included:
• conversion of the ground floor into 2 retail units
• 4 one-bedroom flats across the upper floors
• redevelopment of the rear events space into 8 two-bedroom mews houses
The total estimated build cost was in the region of £750,000, with a projected gross development value of approximately £1.8 million.
The scheme is located in a well-connected market town with strong access to Nottingham and the wider East Midlands. The area also benefits from direct rail links to London, with journey times of just over an hour, supporting both commuter appeal and long-term rental demand.
The client required development finance over an 18-month term to deliver the full scheme.
The approach
The starting point was understanding both the scheme and the strength of the sponsors behind it.
The borrower was an experienced portfolio landlord operating through SPVs, focused on acquiring assets with clear value-add potential through conversion. The project was supported by a business partner with a strong professional income, providing additional financial strength behind the transaction.
The funding needed to reflect:
• a fully consented scheme with a clear planning position
• a mixed-use development with both residential and retail elements
• a strong GDV of £1.8m against a £750k build cost
• a clear exit strategy via refinance onto investment mortgages
Given the client’s intention to project manage the build, particular attention was given to demonstrating the delivery structure, including the existing team of trades and professionals already in place.
By presenting the full picture — planning, costings, sponsor strength and exit — the case could be positioned as a well-structured development rather than a higher-risk conversion.
The outcome
Development finance was structured to support the delivery of the full scheme over an 18-month term, aligned to the build programme.
This enabled the client to move forward with the conversion of the site into a mix of residential and commercial units, unlocking significant value from a previously underutilised property.
Upon completion, the client intends to retain the assets by refinancing onto longer-term investment facilities, while maintaining the option to sell individual units if required.
Whether the funding need is asset purchase, development and refurbishment finance or long term investment hold, Expert Finance can deliver the right funding package for you.
