United Trust Bank (UTB) Structured Property Finance was approached by a broker to provide a £9.65m commercial bridge to a multi-investor Limited Partnership (LP) represented by an experienced asset/investment management company.
The LP had built an 87,000 sq.ft. light industrial unit on a mature industrial/retail park and wished to refinance the original development funding and give themselves time to secure a strong tenant in preparation for sale.
The unit was valued at £14.7m with vacant possession however, once let on a long lease and generating in excess of £1m annual rent, the value was estimated to increase to £17.4m and the asset management company was already in advanced negotiations with a prospective tenant intending to lease the whole unit.
Within 5 weeks of the initial enquiry, UTB completed an 18-month commercial bridge, with the first 12 months interest rolled up. The facility allowed time for the lease to commence, rent to stabilise and for the asset managers to find a suitable purchaser at the increased value.
| Borrower | Multi investor Limited Partnership working with experienced Asset/Investment Manager |
| Amount | £9.65m |
| Loan Type | Commercial Bridge |
| LTV | 55% |
| Term | 18 month Term |
| Location | South of England |
| Loan Purpose | Refinance of existing commercial development funding and rent stabilisation ahead of sale |
| Special Feature | 5 weeks from initial enquiry to completion New build light industrial unit Bridge gives customer time to add value by securing strong long-term tenant |