Pallas Capital supports industrial-to-resi development with £7.5m bridging loan

22 October 2026

Pallas Capital has completed a £7.5m bridging loan against a former industrial site in Tottenham, North London, which has planning permission for a mixed-use scheme of 80 units. The consented plans include 41 open market homes, 12 affordable homes and 27 commercial units, set to turn a site of warehouses and offices into 53 new homes alongside new commercial space.

The 6-month facility was structured at 50% LTV and refinances the borrower’s existing bridge, which had reached the end of its term. Pallas Capital stepped in to give the borrower continuity at a key point in the project.

The site was previously a light industrial site, home to warehouses and offices, before the borrower acquired it in 2025. That makes it brownfield land, meaning a previously developed site, and London has plenty of it. The capital’s brownfield land registers have capacity for more than 462,000 homes, nearly a third of the England total, according to CPRE’s State of Brownfield 2025 report. However, only 54% of that capacity has planning permission. This Tottenham site has crossed that line, with consent in place for 53 homes, 12 of them affordable, alongside commercial space, and the Pallas Capital bridge keeps it moving towards delivery.

The transaction was introduced by Derek Bradstock, Managing Partner at BBA Finance, who brought the opportunity on behalf of an experienced landlord and developer with a sizeable property portfolio. That portfolio has been built by buying properties to renovate, convert and build, and the track record it provides made this site a natural next step.

A mixed-use scheme of this scale demands a tailored approach, with the planning, legal and technical elements all needing to align. Rather than treating the loan as a standalone transaction, the Pallas team looked at the scheme as a whole, structuring the facility around the borrower’s plans for the site and staying in close contact with BBA Finance and the borrower to keep the deal moving through to completion.

Chris Wright, Senior Underwriter at Pallas Capital, commented:

“Lending on a site like this means looking past the warehouses and offices standing there today and backing what they are going to become. With a change of use, a mix of homes and commercial space, and planning that has to line up with the legal and technical side, it takes real experience to know how the pieces fit together, and that is what we bring to a deal like this. What put us at ease was the borrower. They have bought, converted and built their way through a sizeable portfolio, so we trusted them to see this one through, and we were glad to work alongside Derek and BBA Finance. We can’t wait to watch it come to life and bring new homes to Tottenham.”

Pallas Capital is in continuous discussions with the borrower about the next stage of the project, reflecting its focus on building relationships beyond completion.