Investment management firm MERA has extended a £3 million bridging facility to fund the acquisition and residential conversion of a commercial building on City Road, close to Old Street in central London. The development will transform the existing office space into 21 residential apartments through permitted development rights.
The transaction highlights the continued appetite among investors for office-to-residential conversion opportunities in London, particularly in areas benefiting from strong transport links and proximity to the City. Old Street, situated at the heart of the capital's tech corridor, has emerged as a prime location for such schemes given its established infrastructure and employment base.
The use of permitted development rights enables developers to bypass the traditional planning application process for office-to-residential conversions, significantly reducing both timeframes and costs. This regulatory framework has become increasingly attractive to investors seeking to capitalise on London's persistent housing shortage whilst repurposing underutilised commercial space.
For the broader market, such transactions underscore the growing institutional confidence in residential conversion projects, particularly where bridging finance can facilitate swift acquisitions in competitive bidding situations. The development also reflects ongoing structural changes in office demand patterns, with some commercial landlords pivoting towards residential opportunities in response to evolving workplace requirements.
MERA's involvement signals continued lender appetite for well-located conversion schemes, particularly those benefiting from strong fundamentals such as transport connectivity and established local amenities that support residential occupancy.
