As part of our series of regular case study updates, we have provided an example of a recently completed £7 million loan secured against three hotels in the UK.
Deal scenario
The client was seeking total borrowing of £7 million with the loan secured against a portfolio of three hotels.
Two of the hotels were operating under contracts awarded by the government. Furthermore, to add a further level of complexity, all three properties were in an offshore ownership structure, based in the British Virgin Islands (BVI).
The borrowing was based on a favourable loan-to-value ratio of below 60%.
A key issue for the client was a prompt turnaround, particularly as the existing loan that was being refinanced was over term.
Our lending solution
The attractive LTV, our previous experience with BVI-based financial entities, and the income profile provided by the client meant that we were happy to provide the necessary refinancing.
Most importantly, to support the client’s requirement for a quick completion, we completed this loan – from initial instruction to completion – in only three weeks.
Outcome
Our Commercial Director, Jamie Russell, commented:
“Hotel deals are rarely straightforward, but with this particular facility there was added complexity of government contracts and BVI borrowing structures.
“We’ve long been regarded as having sector specialism within the hotel space and we frequently work with offshore borrowing structures to deliver for our clients.
“Once we had analysed the income profile of the hotels, we were comfortable to refinance the existing loan and give our clients enough time to facilitate a sale.”
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.”
