The loan will be used to convert the three upper floors of a listed building, formerly offices, into nine modern flats in the heart of Aberdeen.

Consisting of a mixture of one and two-bedroom apartments, the development will be finished to a modern standard, designed to appeal to young professionals working in and around the city centre. The project is due for completion in Autumn this year, with a show flat ready in June.

The development is the first in a number of local projects planned by Status Properties.

Bruce Robertson, relationship director at Assetz Capital, said: “It has been a really exciting journey working with StatusProperties on our shared vision to positively invest in the growth of the North East of Scotland economy. This is an example of Assetz supporting a viable and sensible scheme despite generalised economic challenges.

“People are willing to invest in Union Street and it’s great that we can support the team to improve the quality of stock in the Aberdeen property market. This is the latest in a number of deals in the North East of Scotland, and across Scotland as a whole, which are important growth areas for Assetz Capital.”

Alan Wallace, director, Status Properties, added: “Union Street, Aberdeen is one of the main trading streets in Scottish cities but has suffered with the downturn in retail trading. This releases the opportunity for city residential space which Statusproperties Ltd will take full advantage of. Bruce and the team at Assetz Capital have supported us every step of the way and we’re looking forward to continuing our work with them as this process continues throughout the year.

“Aberdeen is certainly a great place to be for young professionals seeking jobs after university and we hope that this development will attract more residents to the high street and wider area.”