United Trust Bank (UTB) Structured Property Finance was approached by a commercial finance broker to refinance and release equity from a newly refurbished commercial property with a stabilised value of around £8.4 million.
The scheme is led by an experienced investment management business with a strong track record of successful property ventures across various commercial, residential, and mixed-use projects in England & Wales. The business co-invests alongside a variety of private investors with each project owned by a special purpose vehicle.
The purpose of the loan was to refinance the existing facility and release equity from the completed development as the commercial units are let. The ground floor and basement had been let to a well-known retailer, and the refurbished offices on the upper 5 floors were vacant but being marketed.
UTB agreed to provide a £5m commercial bridge for a three-year term with interest retained for the letting up period, expected to be 12 months, after which the interest would be serviced. Equity would be released in two tranches. The first upon practical completion and the remaining £1m when rent had stabilised. The full £5m facility represents 60% of the stabilised LTV.
| Borrower | Value-add Property Investor/Developer |
| Amount | £5million |
| Loan Type | Commercial Bridge |
| Location | South East England |
| Term | 36 months |
| Loan Purpose | Refinance, equity release and stabilisation for new to Bank customer |
| Special Features | Complex KYC/B due diligence requirements Retained interest during letting up period Equity release as NIC Covenant is met |