Inspired Asset Management has made its first acquisition inside London’s Zone 2, in south-west London, and plans to build a £20m micro-apartment residential scheme there.

Inspired Abbeville House

Inspired plans to convert Abbeville House using PDR

Having received permitted development consent, Inspired will convert the 19,000 sq ft 1930s office building at 177 Abbeville Road (pictured) in Clapham into 30 one-bed and 11 two-bed micro-apartments. It also plans to submit a further planning application for additional new-build homes.

“This is Inspired’s first micro-apartment scheme in a central London location providing high-spec, high-tech homes that are considerably more affordable,” said Inspired chief executive Martin Skinner. “Clapham Common is one of the most sought-after locations for London’s young professionals and city workers.”

The apartments will be priced around 20% below typical new-builds in the area, were house prices have risen 36% over the past five years. Construction work is expected to commence next month.

The redevelopment and acquisition were funded through a senior loan from GreenOak Real Estate and mezzanine finance from Northridge Capital.

Earlier this month, Skinner called on the government to encourage new PDR after a critical report of some conversions by the RICS.