UTB steps in with an £11.3m structured refinance
United Trust Bank’s Structured Finance division was approached to refinance a development of 26 residential apartments in North London with the ultimate beneficial owner being an offshore family trust. The existing high loan to cost lender was funding the construction of the development and our original offer of funding was based on the development reaching practical completion.
However, due to delays with the construction program, the Bank was asked to vary the terms and to step-in before the development had fully reached practical completion. The Structured Finance team was able to ascertain from site inspections and professional reports that the development had been largely de-risked and that effectively the remaining works comprised final fitting out and snagging. On this basis the team agreed to progress the amended proposal.
After completing due diligence on the customer, which included the provision of multiple legal opinions across different jurisdictions, the facility was made available for draw down before practical completion with a residual sum to meet the outstanding construction costs. The exit will come from the sales of the completed apartments within the term of the facility.
Introducing broker Raphael Tenenbaum of Iron Bridge Finance commented:
“In my experience of working with the Structured Finance division of UTB, I have found them to be a very reliable and experienced finance company. The team, led by Gerard Morgan Jackson, has a practical, hands on and solution driven approach. Ajsela’s involvement in this particular transaction certainly enabled my client to complete on time and within budget.
UTB have a good eye for detail and are not perturbed by taking on difficult challenges. I would happily recommend UTB as trustworthy bankers and look forward to working with them for many years to come.”
|Loan Type||Structured finance|
|Project type||· Part new build/part conversion project
· 26 residential apartments
· Four Storey building
|Special Features||· Ultimate beneficial owner an offshore family trust
· UTB asked to vary terms and step in before the development was fully signed-off