Max LTV
70%
Term
15 year
Margin
sub 250 bps
With strong tenants and a stable income stream
a 15-year term was achievable at sub 250 bps
The deal
Assets
- Retail, hotel and car park
- London Underground station location
Security
- First charge over assets
Income
- From rental of all properties
- 100% let to strong national retailers
- 9 year WAULT to break
Requirements
- Maximum LTV acquisition finance
- Long debt term
- Low amortisation
Challenges
- Large ground lease
- Multi discipline assets
- 20 tenants
Facility Secured
- 15-year term
- Low amortisation for first 5 years
- 70% LTV at sub 250 bps margin
Summary
A Family Office client was purchasing the leasehold of a shopping centre in London, in close proximity of both Underground and Overground stations. The retail, hotel and car park assets made up a commercial portfolio valued at £25m.
100% of the units were let to strong national retailers and the long WAULT to break meant a 10-15 year term could be considered. They were seeking maximum LTV that could be achieved at “senior” finance pricing with low initial amortisation.
We successfully leveraged the leasehold at 70% LTV at sub 250 bps. The15 year facility compared favourably to the client's existing offer of a highly amortising, 5-year term loan at just 55% LTV.