Saving

£1.8 million

LTV secured

60%

Term

5 year

A corporate governance exercise triggered directors of an AIM listed property fund to audit finance options

on a geographically diverse spread of property assets

The deal

Assets

  • £91 million commercial property fund

Security

  • First charge over commercial property portfolio

Income

  • From rental of all properties

Requirements

  • £55m finance
  • 60% LTV, 5 year term
  • Varied asset locations

Challenges

  • Low WAULT
  • Flexibility around right of substitution

Facility Secured

  • 5 year term
  • 60% LTV
  • Top tier bank

Summary

An AIM listed property fund required refinance of a £91m property portfolio, following a corporate governance exercise.

While the existing lender was supportive and had provided renewal terms, the non-executive directors sought an independent review of the current finance structure. In addition, the finance director was interested to know if the LTV had been fully optimised.

The geographical spread of the assets, as well as a low WAULT score, presented challenges when approaching lenders, however a 5 year term facility was secured at sub 200 bps margin (over BoE) with a top tier bank at 60% LTV. This not only saved more than £1.8m, it released additional equity of £5m for future investment.

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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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