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
