Aspen Bridging has funded a £1.6m heavy refurbishment loan to a Chinese developer undertaking a high-end residential conversion in Barnes, south-west London.

The borrower, a Chinese national with experience in property development, is remodelling a period building that had previously been split into four flats, reverting it into a single, luxury dwelling.

The scheme, which involves substantial extensions and basement excavation, will increase the footprint of the property beyond its current 3,000 sq ft.

An initial advance of £1.08m was used to refinance an existing facility and begin construction. The remaining £520,000 — equivalent to 100% of the total cost of works — will be drawn down in stages as the project progresses.

Aspen’s loan was agreed at a 75% initial loan-to-value, with the completed scheme expected to carry a gross development value of around £3m.

The transaction included navigating a retrospective planning issue related to the basement configuration. According to Aspen, its team played an active role in supporting the borrower through the process, ensuring that planning consent was regularised prior to further funds being released.

The 18-month facility was priced at the lender’s flat rate of 0.84% per month, with exit expected via the sale of the completed residence.

The deal was overseen throughout by underwriting manager Richard Tweddell under Aspen’s one-person-per-case model.

Tweddell said: “This is a considered, highly profitable project by an experienced overseas property professional who understands the scale of the works involved.

“We are always here to support experienced developers — both domestic and foreign — and are happy to share our knowledge and expertise when challenges arise, as we did in working with the borrower in helping to secure retrospective planning permission on this deal.”