United Trust Bank (UTB) Structured Property Finance was approached by a broker to provide an £18.5m refinance and equity release for an existing customer real estate investment company.
The borrower was approaching the end of the 3-year term of an existing facility provided by UTB against a purpose-built shopping centre. Following strong rental income growth and a corresponding increase in the asset’s value, the investment firm sought to refinance to a new 5-year facility while also releasing £1.5m of equity.
UTB enjoyed strong relationships with the principals having financed this and several other properties for different members of the group in recent years. The Structured Property Finance team was therefore able to move efficiently, updating its due diligence, including a detailed review of the centre’s tenant mix and lease profile.
With all requirements satisfactorily met, UTB agreed to provide the new £18.5m facility, structured with a fixed interest rate for the first two years, transitioning to a variable rate for years three to five.
| Borrower | Real Estate Investment Manager |
| Amount | £18.5m |
| Loan Type | Commercial Investment facility |
| LTV | 56% |
| Term | 5 year term |
| Location | London |
| Loan Purpose | Refinance of existing loan facility including £1.5m equity release |
| Special Feature | Combination of fixed and variable interest rate |