April 18th, 2017. Luke Egan
Deal of the Month: £4.7m Bridging Loan to Purchase a Cement Works
On occasion, finding commercial finance can be tricky – especially if you’re on a tight timescale. This was the case for a recent client who approached us following a recommendation from his corporate finance advisers.
The client quickly needed a large loan and we were tasked with finding and securing a solution for this unique situation.
The client was looking to purchase a cement works, with the intention of obtaining planning permission for a very large development that would include industrial, commercial and residential properties. This development would have a huge, positive impact on the local economy and had been a project the client had wanted to get started for quite a while.
However, the client was struggling to get the project off the ground as no lender was willing to take a commercial view on both the future potential value, as well as the work that had already gone into the project.
We started speaking to specialist bridging lenders, but it was hard to find one that understood large development projects, as well as the uplift in value that planning gives. That was until we presented the deal to a lender that we have worked closely with in the past on a similar project.
They instantly recognised the positives and the lender offered us terms straight away for £4.7m, which we presented to the client and were accepted.
This loan, combined with the client’s own funds, allowed him to complete the purchase within the tight deadline. When planning permission is granted for the proposed project, the value of the property is expected to multiply by up to 3.5 times, making this a very lucrative deal for the client.
Article By Luke Egan
April 18th, 2017
Luke heads up our specialist property finance team where his focus is to drive our transactions valued between £100k and £5m.
Luke and his team manage enquiries from initial enquiry through to redemption. Luke also sits on the internal credit committee with Ben and Tom.
Luke joined Pure back in 2014 following a successful role in the Barclays property finance team that lasted over 8 years.See more articles by Luke