United Trust Bank (UTB) Structured Property Finance was approached to support the refinance of two large commercial assets with the majority of both let on long occupational leases to a well-established national hotel chain.
The existing facilities on both buildings were nearing the end of their term and their incumbent lender had indicated that they wished to exit. The 3-year commercial investment loans would enable the borrower to refinance at competitive rates and release equity to settle a tax obligation in the beneficial owners’ jurisdiction. Ownership was complex, comprising the asset management company co-investing alongside several overseas shareholders.
The combined value of both assets was £15.8m and together they generated a passing rent of just over £1m. Having undertaken valuations and due diligence, UTB agreed to provide three-year serviced investment loans totalling £7.7m which would refinance the existing facilities, settle the tax bill and cover the associated transaction costs.
| Borrower | Real Estate Investment Manager |
| Amount | £7.7 million |
| Loan Type | Combined Commercial Investment Facility |
| Location | North-West and Cotswolds |
| Term | 36 months |
| Loan Purpose | Refinance of two commercial properties |
| Special Features | Complex overseas ownership structure Returning customer Leisure and Hospitality sector |