United Trust Bank (UTB) Structured Property Finance was approached to provide a £2.9m commercial bridge to an experienced real estate investment & development company with interests in the UK, Europe and USA.
The customer had the opportunity to acquire a multi-let office block in a sought-after Central London location at a significant discount to the asking price and with considerable value add potential. UTB was approached to provide a £2.9m commercial bridge towards the £4.83m purchase price agreed and which the borrowers felt fairly reflected the vacant possession value.
Once brought into their portfolio, the borrowers intended to see out the existing leases and transition with a phased move to a managed and serviced workspace model with greater income potential than traditional occupational leases. Net interest cover of at least 125% would be provided from the outset.
Having quickly completed due diligence, UTB provided a competitive 2-year commercial bridge with serviced interest which met the customer’s requirements.
| Borrower | Real Estate Investor-Developer |
| Amount | £2.9m |
| Loan Type | Commercial Bridge |
| LTV | 60% |
| Term | 2 Year Term |
| Location | Central London |
| Loan Purpose | Acquisition of multi-let office building |
| Special Feature | Value add potential by pivoting to managed workspace as current occupational leases expire |