UTB’s Structured Property Finance team provided an £8.5m loan secured against a predominately retail asset with full consent for redevelopment into an 85-bed elderly care home.
The sponsor, acting as asset manager, sought to refinance existing senior and mezzanine debt, while unlocking additional capital to secure vacant possession through lease surrenders. The 12-month facility would give them sufficient time to reposition the asset and execute an exit via sale or refinance.
At the point of funding, the investors were in advanced talks with a care home operator interested in taking a long lease on completion, strengthening both the income profile and exit value. Notwithstanding this, valuers supported a £49m turnkey valuation, reflecting strong anticipated demand from established operators across the care sector.
| Borrower | Real Estate Investment Manager |
| Amount | £8.5m |
| Loan Type | Commercial Repositioning facility |
| LTV | 55% |
| Term | 12-month term |
| Location | London |
| Loan Purpose | Refinance alongside funding for lease surrenders and asset preparation to support an exit via sale or forward funding |
| Special Feature | £49m turnkey GDV and £65m GDV on stabilised income |