5 SME property sector case study completions totalling £44m

Many borrowers, especially those in the commercial real estate sector, have found it more difficult to obtain debt.

This has fuelled a strong Q1 performance for Ortus and a significant increase in average loan size.

Larger, more complex loans are increasingly finding their way to us as we are able to understand and find solutions for residential and commercial property scenarios and also due to the certainty of funding that we can offer.

5 examples of recent lending demonstrate Ortus’ appetite for specialist finance

1. £21.6 million care home refinance

This project involved the refinancing of a development loan for three new-build care homes.

Our loan provided valuable breathing space for our client, that will enable them to stabilise their business, and potentially sell the homes after construction.

Stabilisation finance of this kind is a core part of our offering.

2. £9.75 million refinance on a residential block in London

The block provided emergency accommodation, and the finance was underpinned by a government-backed contract.

The existing development lender needed to be refinanced, but the term lender required the tenancy to be executed and stabilised prior to lending.

Timescales were tight, and we completed the process within five weeks.

3. £7 million to refinance a London hotel portfolio

Our borrower was under pressure to refinance a London hotel, but also to stabilise two other hotels that were coming to the end of government-based asylum seeker contracts.

Our loan has enabled the borrower to reposition the hotels and stabilise the income before either refinancing or selling the properties.

4. £2.9 million engineering business restructure to fund increased capacity

This deal was partly a refinancing exercise, but also included the purchase of a further commercial property on the same industrial estate where the business is located.

This will increase the capacity of an engineering company and required total borrowing of £2.9 million.

It wasn’t a straightforward proposition as half the business is owned by a European company, which added an extra layer of complexity.

We’re seeing an increase in demand for this type of restructuring facility, as businesses review their long-term plans.

5. £3 million hotel business refinancing to modernise two properties

This complex transaction involved a client looking to refinance an expired commercial mortgage and release equity from four of their hotels to modernise two of the properties.

As well as raising capital to invest in the two hotels, the borrower used this as an opportunity to restructure the group to help drive future expansion.

Their exit strategy will be to refinance with a major bank once the modernisation investment is completed.

We are well positioned to support loans of this size

Commenting on the quarter one figures, Ortus commercial director, Jamie Russell said:

“We’ve seen our average loan size increase significantly in Q1 2024. Our clients need certainty, and Ortus has built a strong reputation as a reliable funding partner.

“There is a real gap in the SME lending space for supporting loans between £5m-£25m and we are  extremely well positioned to support loans of this nature.  As many lenders lean heavily towards residential property, we’ve found a real surge in demand for our commercial lending proposition.

“Now is a great time for clients and introducers to build a relationship with Ortus if you haven’t already”.

Get in touch 

If you’d like to talk to us about our commercial lending proposition and how we can help you and your clients, speak to the Relationship Director in your local office.