- Client: UAE Resident, American National
- Net Worth: $80 million
- Requirement: Purchase three distressed properties in Miami, New York and Dubai
- Financing: $11 million
- Product: Six-month bridge at 2% per month
- Security: First charge over UK private shares, US land and an SPV holding the Dubai property
Enness was approached by an ultra-high-net-worth individual looking to take advantage of several time-sensitive opportunities to acquire distressed property in Dubai and the United States. The client was a UAE resident and American national with a net worth of approximately $80 million, although a significant proportion of their wealth was held in illiquid assets, including private investments and land.
The client had identified three distressed property opportunities in Dubai, Miami and New York and was looking to benefit from the potential arbitrage available by acquiring the assets at favourable prices. The purchases had already been agreed and needed to complete within six weeks, creating a significant time constraint and requiring a lender capable of moving quickly across multiple jurisdictions.
The complexity of the transaction was increased by the fact that the client wanted to use a combination of assets as security. Rather than relying on a single property, Enness reviewed the client’s wider asset base and identified several assets that could potentially form part of a diversified collateral package.
This included a large plot of land in the United States valued at approximately $21 million. The land had significant development potential, with offers to purchase it reportedly reaching approximately $44 million. The client also held private shares in a British trading company valued at approximately £2 million, with strong projections for future growth.
The Dubai acquisition itself provided an additional opportunity to strengthen the security package. The property was valued at approximately $6 million and could also be incorporated into the overall collateral structure through a special purpose vehicle. Combining the different assets allowed the lender to consider a broader security pool rather than relying solely on the individual properties being acquired.
Enness structured an $11 million facility secured by first charges over the UK private shares, the US land and the SPV holding the Dubai property. The six-month bridging facility was arranged at 2% per month, providing the client with the capital required to complete the Dubai purchase and contribute towards the Miami and New York opportunities.
The bespoke structure allowed the client to leverage existing assets that were otherwise relatively illiquid and deploy capital quickly into time-sensitive investment opportunities. The diversified collateral package also provided the lender with security across multiple asset classes and jurisdictions.
This case demonstrates the importance of taking a holistic approach to complex financing. Where a borrower has significant wealth spread across different assets and jurisdictions, a bespoke bridging finance structure can potentially unlock liquidity that would not be available through a conventional property loan.
Enness works with international lenders to structure finance for complex transactions involving multiple jurisdictions, unusual assets and mixed collateral pools. To discuss your requirements, speak to a mortgage specialist.
Risk Warning:
Bridging finance is short-term borrowing and carries risks. Property values and other assets used as security can fall in value, and borrowers may be unable to meet their obligations or repay the facility within the agreed term. If you do not meet the terms of the facility, lenders may take enforcement action against assets provided as security. A clear and realistic exit strategy is essential.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, asset assessment and lender criteria. Terms and availability will vary depending on individual circumstances, assets and the proposed transaction.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
