United Trust bank recently completed a £7.5m short term bridging loan for a Jersey based corporate client secured by way of first charge over a City of London office block.
Gerard Morgan Jackson, Head of Bridging Sales at United Trust Bank commented;
“Although the Bank’s Bridging Department is primarily focused on loans secured by residential property, this loan demonstrates our willingness and ability to entertain a wider variety of property security. Our facility enabled our borrower to release equity from their asset as well as recoup previously incurred refurbishment costs.
“As ever we are up for a challenge, and here some of the complexity lay in the offshore ownership structure behind the asset and the way in which guarantees were provided.
“The loan was also structured to so that the borrower makes quarterly interest payments in line with the rental payments received from the principal security property as well as stepped capital repayments.
“The loan is another demonstration of how varied in terms of size, complexity and purpose our short term bridging loans are. In essence we sat down with the client, identified their needs and went on to design a bespoke facility to meet these requirements. This loan had more in common with structured finance than the traditional bridging of a purchase before sale transaction or “classic” bridging loan that many finance professionals still associate bridging loans with.
“UTB is committed to assisting businesses and commercial operations as well as individuals with their short term funding requirements.”