Bridging finance

12 months required

Timing important

Client deadline

Margin secured

0.5% per month

Three pristine London apartments were offered as collateral at 33% LTV,

seeking a 12-month bridge for a short term requirement. Timing was vital for the client.

The deal

Assets

  • Three brand new apartments, total value of £9m

Security

  • First charge over all properties
  • Award-winning development

Income

  • No income – interest roll-up
  • Assets never tenanted

Requirements

  • £3m bridge finance
  • 12 month term

Challenges

  • Properties held in separate SPVs
  • Quick timing important

Facility Secured

  • £3m secured, one term sheet across all SPVs
  • 0.5% margin, 12 months

Summary

Our client approached us initially to take out finance against one of the three properties we eventually secured lending against. It was quickly apparent that instead of circa 70% LTV against one asset, 33% LTV against three assets would secure better rates.

The assets were high quality and pristine, having never been let out. With no income in any of the SPVs, interest roll-up was required. The client had a strict deadline due to an upcoming life event and so we had to be confident that the lender would draw down in time.

The credit was drawn down over a month ahead of the client's deadline and at a low margin of 0.5% per month, with a reduced 0.1% arrangement fee.

How can we help?



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Want the details?

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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