Size of property portfolio

£135 million

Interest only

Low amortisation

Minimal makehold

1 year

A property company was refinancing its portfolio of regional office assets to support an asset value maximisation program.

Aside from a high LTV, the client was sought low amortisation and flexible money.

The deal

Assets

  • Office assets
  • Regional UK

Security

  • Senior and mezzanine facilities with first and second legal charges respectively

Income

  • Rental income from office tenants
  • Some owner-occupier income

 


Requirements

  • High LTV (over 75%)
  • Low amortisation
  • Competitive blended pricing

Challenges

  • Limited prepayment penalties wanted
  • Regional portfolio with a challenging history of vacancies

Facility Secured

  • £88m interest-only facility
  • Zero prepayment penalties after 1 year
  • High LTV through senior and mezzanine tranches

Summary

A UK property investment and management company sought to refinance its portfolio of regional UK office assets. We were asked to seek competitive funding but at a leverage level above traditional senior funding. Furthermore, any facility sought also needed to have limited prepayment penalties to give the client maximum flexibility to undertake property value maximisation works.

The team undertook full modelling, including filming of the entire portfolio and engaged with lenders appropriate for such a transaction on both senior and mezzanine levels. The facility secured has no prepayment penalties after year 1 and achieved an LTV above 75%. The blended margin for the total debt amount was below 4%.

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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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