Our customer specialises in the sourcing and management of student accommodation.
They had recently acquired a student accommodation block in a West Coast town which was unencumbered. They wished to purchase a similar property, this time in an East Coast town, using short term finance and wished to use both properties as security to fund the acquisition.
There were multiple challenges for the Bridging Department in a short space of time to understand the nature and extremely complex structure of our customer’s business which also involves an offshore jurisdiction and several entities of differing legal status.
The legal due diligence was impressive and involved several lawyers at the Bank’s solicitors and ultimately several other solicitor firms as the Bank’s loan formed part of a wider banking and financial transaction.
Our customer drew down two distinct loan facilities to separate entities each with a principal but cross collateralised security. The loans will be repaid by long term facilities similar to those which our customer has already obtained for other units.
Amount of Bridging loan no.1: £2,250,000
Amount of Bridging loan no.2: £3,068,500