Six months on from a £2.3m investment property loan from Secure Trust Bank (STB) Real Estate Finance being granted, a previously tired and dated block of Georgian-style apartments in Cheltenham has been revitalised. The apartments have also been made significantly more energy efficient, following a complete overhaul of the building's interior and exterior.
Buckingham Court, situated on Wellington Street in Cheltenham, is a four-storey block of apartments within walking distance of Cheltenham's main town centre. A prominent building featuring classic Georgian-period features such as vertical sliding windows and balconies on the first floor, the block had become run down and was in need of refurbishment to be able to increase the apartments' desirability and rental yield.
To restore and modernise Buckingham Court, ASD Contracts, a specialist real estate and property development firm, set to work on refurbishing the property and the apartments in autumn of last year. The works and acquisition of the building were financed through a £2.3m investment property loan that was struck with STB Real Estate Finance in October 2023.
Renovation works on the property have been extensive. On the exterior, ASD Contracts has revamped the façade of the building, while retaining the building's Georgian-heritage aspects to ensure the building is sympathetic to its surroundings.
Inside, there are now 16 high-quality, high-specification unfurnished two-bedroom apartments available for let. A typical specification that renters can expect is an open plan combined living room, kitchen and diner, a family bathroom, and a fully-fitted kitchen with built-in appliances. Alongside this, in the bedrooms there are built in wardrobes, as well as an ensuite to the main bedroom, and the apartments benefit from electric heating.
On the transformation and working with Secure Trust Bank, Andy Shaw, Director of ASD Contracts, said: "When we first saw Buckingham Court, we knew it had a lot of potential. Particularly with it being situated so close to Cheltenham town centre, we felt the property would be very popular given its easy access to amenities and shops, not to mention Cheltenham itself being a festival and culture hub.
"That's why we were delighted to have the opportunity to restore this fantastic building, with the help of the loan from Secure Trust Bank Real Estate Finance. It was the bank's property finance knowledge and its tailored approach to structuring the investment loan, that allowed us to give Buckingham Court a new lease of life, and also provide desirable, energy efficient apartments to people who want to live and rent in Cheltenham."
Besides the aesthetic improvements, the building has also undergone a major energy efficiency upgrade to improve the Energy Performance Certificate (EPC) rating of the apartments. All windows and doors have been replaced with more energy efficient counterparts, while insulation has also been installed so that Buckingham Court now has a blend of EPC B- and C-rated apartments, up from their previous EPC D ratings.
With the investment property loan from STB Real Estate Finance signed under a five-year deal and the refurbishment works completed, the asset will now be held by ASD Contracts' sister company, Shaw Estate Management in its investment portfolio. Rental yield on the units within Buckingham Court has increased by 40%, with the apartments highly suited to young professionals and families.
ASD Contracts, a customer of Secure trust Bank Real Estate Finance since 2021, initially drew a £1.95m loan, which was subsequently increased by £350,000 to reach the final agreement. The deal was signed with a Loan To Value (LTV) of 62.6%, reducing to 60% now that the property development works have been completed.
David Burke, Relationship Director at Secure Trust Bank Real Estate Finance, led the deal. Reflecting on the deal, David said: "We are very pleased to see this building with so much history and character thriving once again. Financing in real estate is of course the main job, but actually seeing the properties we finance undergo the renovation process, and helping our customers along the way, is really where the joy comes from."
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