Track record
Over 100 super prime projects
Security
£38m of super prime residences
Saving
£600,000
The trust had completed 100+ super prime residential projects in London over a period of 20 years
With £38m of prime London residential to leverage, they sought further lending of £22m
The deal
Assets
- £38m of super prime London residences
Security
- First charge over assets
Income
- Rental
Requirements
- £22m refinance
- 60% LTV
Challenges
- Trophy assets, individual tenants, low yields
- Void risk post Brexit
Facility Secured
- 5 year term
- Interest only
Summary
Trustees sought a commercial lender who understood the super prime London residential market. There was a requirement to support immediate needs, as well as potentially grow the relationship in excess of GBP 100m.
The trust had a track record of more than 20 years, including over 100 super prime residential projects completed in London.
A fully hedged 5 year interest only facility fulfilled requirements, whilst mitigating the risks perceived by the lender around interest rate versus yield. Void risk was mitigated with an interest reserve.