Recognise Bank has provided a £4.2m commercial bridging loan to support the redevelopment of a Hertfordshire site into a large-scale co-living development.
The deal will enable the client to seek revised planning permission for a major transformation of the site, which is currently approved for a 124-bed hotel.
The new proposals centre on an innovative co-living scheme comprising more than 300 units, reflecting growing interest in alternative residential models that emphasise shared amenities and a sense of community.
Recognise Bank said the transaction highlights its growing commitment to supporting projects that respond to evolving housing needs, particularly those exploring alternative living formats.
The bank’s senior lending manager, Ian Fields, led the deal, working closely with the borrower and broker to structure a bridging facility that accounted for the project’s complexity and urgency.
Fields said: “This deal is a great example of how our personalised approach to lending allows us to support forward-thinking projects such as these. We are delighted to have partnered with Colin and the LDN Finance team to support the client’s novel growth plans.”
The site’s shift in planning use is seen as indicative of wider changes in the residential sector, where many developers are pivoting away from traditional hotel and rental models towards co-living and other community-centric schemes.
The co-living format, which typically combines private accommodation with shared facilities, is increasingly being explored in urban and commuter-belt locations as a means of addressing housing shortages and changing lifestyle preferences.
Colin Anderson of LDN Finance, who brokered the deal, said the lender’s responsiveness and insight were key to achieving a successful outcome.
“Recognise Bank brought exactly the kind of insight and responsiveness our client needed in order to navigate a complex brief,” he said.
Ian and the team demonstrated a clear understanding of both the challenges and potential of the deal. Their collaborative and agile approach helped us to deliver a strong outcome – and a very happy client.”
