Key Details:
- Client Type: International family office with a global property portfolio
- Property Type: Prime UK hotel
- Property Value: Circa £12 million
- Loan Amount: Circa £7.8 million
- Loan-to-Value (LTV): Approximately 65%
Enness was approached by a representative acting on behalf of an international client with a substantial global real estate portfolio. The client was acquiring a hotel in the UK, valued at around £12 million, as part of a long-term UK growth strategy. They required a commercial mortgage at approximately 65% loan-to-value on an interest-only basis. Crucially, the financing needed to be structured in accordance with Sharia principles and the client’s Islamic finance requirements.
This transaction involved several layers of complexity. The ultimate beneficial owners were unable to provide personal guarantees, which ruled out a number of mainstream and specialist lending routes. In addition, the offshore ownership structure and international nature of the borrowers further narrowed the available lending options. The requirement for approximately 65% loan-to-value financing, combined with the need for an interest-only structure and Sharia-compliant financing, meant that a specialist approach was required.
Enness successfully sourced a specialist provider capable of structuring Sharia-compliant commercial property finance at approximately 65% loan-to-value. The facility was structured on an interest-only basis, with pricing and other terms subject to the lender’s assessment and the agreed financing structure. No personal guarantees were required as part of the proposed facility.
The solution enabled the client to proceed with the hotel acquisition while accommodating the international ownership structure and specified religious and financing requirements. The transaction also demonstrated the importance of identifying a lender with appropriate appetite for international borrowers, hospitality assets and Sharia-compliant commercial finance.
Enness has experience in structuring Sharia-compliant commercial finance and navigating complex cross-border ownership structures. Through its network of UK and international lenders, Enness can identify specialist financing solutions where conventional lending criteria may not accommodate the requirements of an international family office or ultra-high-net-worth investor.
Important Information
Sharia-compliant finance is structured according to the requirements of the relevant lender and may differ from conventional interest-bearing finance. Clients should obtain independent legal, tax, financial and Sharia advice where appropriate before entering into any financing arrangement.
Disclaimer
This case study is for illustrative purposes only and does not constitute financial, legal, tax, investment or religious advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, property suitability, valuation, jurisdiction and lender criteria. Loan amounts, loan-to-value ratios, pricing, structures and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
Risk Warning
Commercial property values can fall as well as rise, and commercial property may be illiquid and take time to sell. Where borrowing is secured against property, failure to meet repayment obligations may result in the lender taking possession of the secured assets.
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.
