Term secured

15 year

Margin

Sub 175 bps

Covenant secured

Right of substitution

A UK family office investing in commercial real estate

sought £32m against a £60m mixed use commercial portfolio

The deal

Assets

  • £60m property portfolio

Security

  • First charge over portfolio

Income

  • Rental

Requirements

  • £32 million
  • 55% LTV
  • 10 year term or longer

Challenges

  • Low yield
  • Length of term

Facility Secured

  • 15 year term
  • 55% LTV
  • Pension fund

Summary

A UK family office investing into commercial real estate required long-term re-financing.

A £60m, income producing, property portfolio was offered as security, made the loan an achievable 55% LTV. The property portfolio was split 56% London and 44% other UK locations. The properties varied in size and use, but produced proven stable income.

A 15 year facility of £32m was secured at sub 175 bps margin (over UK GILT rate) with a US Pension Fund lender.

Locations and use of the portfolio's investment properties outside of London

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Colliers International Structured Finance
Second Floor, Weighbridge House, Liberation Place, St.Helier, JE2 3NA, Jersey.

+44 1534 767 600
structuredfinance@colliers.com

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