Pallas Capital has provided £3.54 million in development finance to support the conversion of The Corn Exchange in Ringwood, a building that has remained vacant for more than 20 years.
The 18-month facility, structured at 70% loan-to-value against gross development value, will fund the refinancing of the historic site and enable construction work to commence. The completed project is expected to deliver 12 residential units alongside ground-floor and basement commercial space in Ringwood’s Market Place.
Site complexity and title consolidation
The transaction was managed by senior originator Mark Witherington and underwriter Nicoleta-Smaranda Iorgu at Pallas Capital, with Richard Norton at R&E Finance introducing the deal. The site, which has been empty since 2002, required consolidation of multiple property titles into a single entity before work could begin.
“Consolidating the titles was a real puzzle, but staying in close contact with the team at Halo Developments and the broker meant we could move through the complexities quickly,” said Nicoleta-Smaranda Iorgu, underwriter at Pallas Capital.
The building previously housed the Regal Cinema and Route 42 nightclub. Its redevelopment forms part of wider regeneration activity in the town, coinciding with Ringwood’s 800th market charter celebrations.
Market context
The financing arrangement comes as new build property prices have declined across five UK regions, reflecting broader market pressures. Development finance remains available for mixed-use schemes, though lenders are applying detailed underwriting processes to complex sites.
Eddie Hill, managing director at Halo Developments, said the funding partner’s process was “efficient and transparent from the start”.
The transaction follows established patterns in the development finance sector, where UK property tax considerations continue to influence project structuring and returns. Mixed-use developments combining residential and commercial elements have attracted lender interest in regional markets outside major urban centres.
Construction work on The Corn Exchange is now underway, with the developer reporting support from the local community and town mayor for the restoration project.