A regular client of Castlehill Capital required short-term funding to help with the acquisition of a prime commercial building in Birmingham.
The property was a 4 storey building with approx 20,000 sq feet and located at the very heart of Edgbaston’s vibrant commercial district on the prestigious Calthorpe Estate.
Our client had a tenant lined up to take the a new lease on the property as soon as completion is complete.
The deal required the bridging loan to be structured in a certain away. Fit out costs, rent free period and other associated incentives had to be factored into the loan facility.
Our commercial finance team were able to take into account the strength of the incoming covenant and lease when assessing the loan. Castlehill Capital were able to base the loan on the commercial value of the property with the benefit of new lease opposed to a bricks and mortar valuation. The was supported by the asset being income producing from day 1.
The proposed exit, which was a refinance with a mainstream lender, also helped us in structuring the bridge loan with a higher than normal Loan-to-Value (LTV) for commercial lending.