Warehouse to 8 Luxury Apartments, Bermondsey

The Challenge

A developer approached us with a former leather warehouse on Tanner Street in Bermondsey, within the conservation area behind Bermondsey Street. The building had been used as light industrial workspace for decades and was structurally sound but required complete internal reconfiguration to create eight loft-style apartments. The conservation area location meant the external façade — including original cast-iron columns and arched windows — had to be retained, adding complexity and cost to the build. The developer also faced a tight acquisition timeline as the vendor was dealing with multiple interested parties, requiring a fast initial bridging loan to secure the site before transitioning to development finance.

Our Solution

We structured a two-stage funding solution. First, we arranged a £1.4 million bridging loan completing in 7 working days to acquire the property, beating competing offers that required longer timescales. We then refinanced into a £2.1 million development finance facility at 60% LTC once the detailed design and planning consent were finalised. The lender appointed a quantity surveyor experienced in heritage conversions who understood the cost implications of retaining the original façade and working within the structural constraints of a Victorian warehouse. Drawdowns were aligned to a carefully sequenced build programme that prioritised the structural and façade works in the early phases.

The Outcome

The eight apartments were completed to an exceptional standard, featuring exposed brickwork, double-height ceilings in the upper units, original cast-iron columns, and Crittall-style internal glazing that respected the industrial character. Six units sold off-plan prior to completion at an average price of £540,000, with the remaining two penthouse units achieving £620,000 each — both above the original appraisal. The total GDV of £4.5 million delivered a developer profit of £520,000. The project demonstrated how conservation area constraints, when embraced rather than fought, can actually enhance value.