As part of our regular case study updates we have provided an example of a recently completed 2-year loan secured against four light industrial units.
Deal scenario
The client is a well-established engineering business who needed total borrowing of £2.9 million in order to restructure their operations.
Their business currently trades from two buildings and has a third investment property on the same industrial estate, which is being sold to the current tenant.
The client is then intending to purchase a fourth building on the same estate and relocate part of their operation to this newly acquired property.
To add an additional level of complexity to this arrangement, 49% of their business is currently owned by a European company.
Our lending solution
The loan we provided fulfilled two purposes:
- The refinancing of an existing £1.5 million loan facility with a bank
- The purchase of a new property on the same trading estate as their existing holdings.
Since the sale of the existing third property has a long-stop completion date, we offered a two-year term.
Doing this allows the borrower to exit the arrangement after that sale when, at the same time, they intend to refinance the outstanding balance on the loan.
Fulfilling the client’s needs
Our Commercial Director, Jamie Russell, commented:
“There was a lot going on in this transaction – four properties, refinance, purchase, and an offshore shareholder. Bridging was the obvious solution, and a two-year serviced loan met the borrower’s requirements.
“We’re seeing an increase in demand for this type of restructuring facility. After years of near zero interest rates, businesses are reviewing their long-term plans, and the flexibility of bridging enables them to be executed.”
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.
Beyond Bridges: The next step for borrowers and investors
“This expansion in Ortus’ product range is part of our ongoing effort to serve our loyal clients and introducers. We have had a particular focus on commercial property since our inception and providing 5-year commercial loans was the next logical step in growing our offering. This product now enables us to help borrowers and investors for the next step beyond a bridging or acquisition loan.”
