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.

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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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