United Trust Bank’s Structured Finance department was set up specifically to provide bespoke financial solutions for sophisticated investors and developers.
The following is a good example of how UTB can draw together skills and knowledge from across the Bank to appraise the client’s situation and requirements and quickly formulate a funding package which meets all parties’ needs. Initially the client or introducer outlines the funding proposal and the Structured Finance team then work together creatively to come up with a series of solutions. There follows a face to face meeting with all parties whereby these tailored proposals are discussed around the table. Often terms are agreed at this meeting and then professionals are instructed.
On this occasion, we were approached to consider a proposal to fund a substantial renovation and improvement project in a town on the edge of London. The security comprised two mixed use buildings which backed onto each other. The first was commercial on the ground floor with flats above and the second was commercial on the ground floor with offices above. The client had obtained planning consent to add additional floors, convert the office space to residential and amend the usage of the commercial space. The completed development will provide 31 residential units with a restaurant and a wine merchant on the ground floor. The client also holds a large investment portfolio of BTL assets in the area.
The client had a facility agreed with a clearing bank to fund the development but at the eleventh hour the clearing bank adjusted the terms and increased the requirement for the client’s assets under management. It was at this point that the broker contacted me.
The broker, who I’ve known and worked with for many years, has come to rely on UTB’s Structured Finance division to provide financial solutions where other lenders only see problems. In this instance, the Structured Finance department tailored a three-phase facility which met all of the client’s needs.
For phase 2 the Structured Finance department worked closely with UTB Property Development Director, Paul Keay, to provide the development facility. Where there are time constraints, where the asset does not have planning, or where the client is amending the planning, the Structured Finance department quite often provides the initial facility before being refinanced by a UTB development finance facility once the client has achieved his objectives. This typically increases the client’s profit margin as a direct result.
The Structured Finance department offers a highly personal and unique service, acutely focussing on delivering a custom-made funding solution which meets clients’ needs quickly and efficiently. With a robust and reliable source of funding and a talented and dedicated team, we are fast becoming the first-choice provider of structured finance for a growing number of specialist brokers.
[color_quote]PHASE 1. Refinance Facility – repaid the existing lender secured on the site in under 10 days
PHASE 2. Development Facility – provided 100% of the build costs for the project
PHASE 3. Investment Facility – a medium term investment loan to refinance the client’s existing lender on their BTL portfolio[/color_quote]