Debt Raising for Jersey Trust Business

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Key Facts:

• Client: Liechtenstein SPV / Jersey Trust
• Property Value: £3,000,000
• Loan Amount: £1,950,000
• Product: 5 year, interest-only
• Interest Rate: 2.75% + BoE
• LTV: 65%

In this case, we were approached by a Jersey trust business who were looking to raise debt against an unencumbered investment property housed in an offshore structure. The structure consisted of a Jersey discretionary trust that wholly owned a property holding entity registered in Liechtenstein. The funds were to be used to meet various expenses within the offshore structure, which included refurbishment of the subject property.

It became clear following the valuation that the property required extensive refurbishment in order to meet the standards required for habitation by a third party. We negotiated with the lender an initial drawdown that would cover the cost of the refurbishment. When the property was in a marketable condition, an inspection would be undertaken following which, all being well, the remaining funds could be released. This pragmatic approach allowed the client to essentially borrow funds for the development that would not have been possible otherwise.

We work closely with offshore service providers, and are well equipped to understand the structures they manage and the rationale for doing so. This expert knowledge allows us to package the request in a succinct way that is easy to digest for all involved.