Enness Commercial recently arranged a £17 million commercial finance facility for two international investors, representing one of the firm’s largest commercial transactions at the time.
The portfolio comprised a diverse range of assets, including a student accommodation block, a large government building, an office block and a jobcentre. The properties were spread across London, Bradford, Scotland and Wales, creating additional complexity around the overall financing structure.
The clients were looking to refinance three of the properties while purchasing the fourth. However, the tenancy of the fourth property presented an additional consideration, as the government department occupying the building had publicly indicated that it could potentially exercise a break clause in its lease. This created uncertainty around the future income from the asset.
The ownership structure also required careful consideration. The properties were held through Special Purpose Vehicles (SPVs) across three jurisdictions, including China, Guernsey and the British Virgin Islands. The clients were international investors who spent relatively little time in the UK, meaning it was important to identify a lender comfortable with both the ownership structure and the cross-border nature of the transaction.
OUR SOLUTION
Given the size and complexity of the portfolio, I needed to identify a lender capable of taking a broader view of the assets rather than assessing each property in isolation. Fortunately, Enness had an established relationship with a lender whose approach was well suited to the transaction.
The lender was able to consider the different property types and locations as part of one overall portfolio. This was particularly important because the assets presented very different characteristics. While some lenders may have been comfortable with individual properties within the portfolio, the ability to assess the wider security package provided a more suitable route forward.
Ultimately, I secured a £17 million commercial finance facility across the portfolio. The transaction demonstrated the importance of finding a lender with the appetite and flexibility to consider multiple assets, different property sectors and an international ownership structure within a single financing arrangement.
This case is also a strong example of how property portfolio finance can provide a more suitable structure for investors with diverse commercial assets. For international investors, access to lenders experienced in international property finance can be particularly valuable where ownership, geography and asset types create additional layers of complexity.
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, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise.
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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.
