The deal in a nutshell
In October 2023, we completed a bridging finance deal worth £587,000 on a prime serviced office space located in the heart of Glasgow’s premier shopping district.
The property’s highly desirable and sought-after location presented a unique opportunity for our client to refinance their existing arrangements.
Key features of the loan
- Loan amount: £587,000
- Refinancing focus: Glasgow prime shopping district
- Net annual rental income: £167,000
- Capital repayment included to improve loan-to-market value ratio.
The client’s exit strategy
A well-defined exit strategy is crucial for any bridging deal of this kind. In this case, the borrower’s goal was to ultimately refinance in a more favourable lending climate with Recognise Bank.
It was an exceptionally smooth transaction with good-quality borrowers. As well the stated primary exit strategy, they were also in a position to offer alternative exit strategies if required.
Get in touch
We are committed to providing our clients with flexible and tailored bridging finance solutions. Please don’t hesitate to get in touch to understand more about how we can help.
To find out more, speak to the Business Development Manager in your local office.
Our lending expertise in action
With a 36-month term, this is an excellent example of a highly effective use of our mid-term commercial product that we launched in February 2023 in response to unfavourable market conditions.
It’s a bespoke product that is ideal for restructuring loans when borrowers are struggling to meet their existing banking covenants. It includes an “ERC-free” window from months 18-24, giving borrowers a chance to refinance should their business and/or the market make significant improvements within the three-year term.
In this instance, by using our mid-term commercial product, we were able to strategically spread the cost of the loan, resulting in a reduced debt amount of £468,000. This represents 60% of the property’s value price and an impressive 34% of the overall market value, significantly enhancing our borrower’s refinancing options.
We further demonstrated our expertise by swiftly turning the loan around well within the agreed time frame. We engaged in ongoing collaboration with all parties involved to ensure a smooth and seamless process.
Being able to speak directly to the borrower early on was extremely helpful as it meant we were then able to save time by going directly to them for more information when it was needed.