United Trust Bank (UTB) Structured Property Finance was approached to provide a £35m stabilisation loan to a sophisticated international real estate investment manager with significant property interests in the UK and abroad. The customer wished to refinance their existing development facility to reduce ongoing finance costs and release equity to employ in the completion of another pipeline development in London.
The security property was a former office building close to Heathrow airport which the customer had converted to 169 high specification apartments and ground floor commercial space to retain in a substantial BTR portfolio. The building was valued at £56.2m with an estimated stabilised rent of £3.6m per annum. Although finished, all 169 apartments were awaiting final sign off and the lettings process had not yet commenced.
Having quickly completed due diligence and being comfortable with the strength of the sponsor and the expected high tenant demand due to the building’s location, UTB’s origination team put together a bespoke £35m facility with a two-tranche equity release schedule which met the customer’s requirements.
| Borrower | Real Estate Investment Manager |
| Amount | £35m |
| Loan Type | Structured Residential-led Stabilisation Facility |
| LTV | 62% |
| Term | 3 Year Term |
| Location | Greater London |
| Loan Purpose | Refinance of Office to Residential BTR scheme |
| Special Feature | Two tranche equity release |