A client returned to us recently looking to refinance a significant amount from his £24million hotel development in West London.
He came from a family of property developers with a portfolio of various properties and businesses in the UK. The family have worked with Enness on several projects since 2013.
He was looking to gain a cheaper term product than his current bank was able to offer.
As the hotel was a new development and had only recently opened its doors to guests, it had a very little trading history. This would make banks sceptical of the client’s repayment ability. Equally, the property developer client had accrued some adverse credit in the past couple of years due to the fluctuating economic landscape in the UK.
We approached a lender that the client had not previously considered. This lender not only offered the most attractive rates that we could find but also gave the potential for an ongoing business relationship, guaranteeing excellent terms on the client’s future investments.
We negotiated a capital raise of 60% loan to value (LTV), or £14million, which gave huge faculty for the property developer’s future plans. This was secured a rate of 5% fixed for 5 years over a 10-year term.
If you have commercial or development projects in mind, be they purchases or refinances, get in touch with Enness to see how our world-class brokers can assist you.