Aldermore has provided £4.75 million in commercial real estate finance to Browns Real Estate for the conversion of a vacant office building on Guildhall Street, Folkestone, into 32 self-contained apartments.
The building, located above a ground-floor retail unit, has been converted across four floors to create 15 one-bedroom and 17 two-bedroom apartments. The first three floors each contain nine units, while the fourth floor comprises five newly built two-bedroom apartments with private terraces. Basement parking is available to tenants.
Strong initial take-up
Since launch, 26 tenancies have been agreed across the 32 units, with full occupancy anticipated. The apartments feature quartz kitchen worktops, integrated appliances, wood-effect flooring in kitchens and bathrooms, and contemporary bathroom fittings.
The development is situated at the junction of Guildhall Street, Sandgate Road and Rendezvous Street, approximately 300 metres from the seafront and within walking distance of Folkestone Central station. Bouverie Place Shopping Centre and Park Farm retail park are nearby.
The project represents the largest single development to date for Browns Real Estate, which has worked with Aldermore since 2019. The conversion also created work for local contractors and suppliers in Folkestone’s construction and service sectors.
Wider market context
The office-to-residential conversion comes as the UK property market faces economic headwinds affecting house prices, with investors increasingly looking at rental opportunities. The project also follows recent changes to stamp duty thresholds that have impacted property transactions across the UK.
Azfar Rizvi, commercial director of commercial real estate at Aldermore, said: “William’s latest project is a strong example of how experienced local investors can play a vital role in regenerating town centres. Transforming a long-vacant office building into high-quality residential accommodation not only helps meet growing rental demand but also brings new life to the heart of the community.”
William Brown, director of Browns Real Estate, said: “Folkestone is where I grew up, and I’ve seen first-hand how much the town has evolved in recent years. When the opportunity arose to acquire and convert this building, I knew it had the potential to become something that would positively contribute to the town centre.”
The building has been renamed Master Williams Place in memory of Brown’s seven-year-old son, who died in a car accident. Stewart Currie, business development manager for commercial real estate at Aldermore, said the lender had built a relationship with Browns Real Estate over several years, supporting the growth of its portfolio.
The Folkestone project reflects ongoing demand for rental accommodation in town centres, with office-to-residential conversions providing one route for developers to address housing supply while regenerating urban areas.