CASE STUDY: Commercial purchase in Brighton completed in 5 days

Pivot recently completed a £1.06m first charge commercial bridging facility at 44.34% LTV to help a borrower purchase a commercial asset in Brighton.

A broker we frequently work with approached us with the initial enquiry, explaining that the borrower had been let down by another bridging lender who didn’t not like the asset and were left in a difficult situation. The purchase was time sensitive and they only had a week to complete the transaction or would lose the property.

The detail:

Product: First charge commercial bridge

Security: Grade II listed disused commercial asset in need of redevelopment

Gross loan: £1,064,175.75

LTV: 44.34% LTV

Term: 12 months

Borrower Type: Offshore company with trust structure

The borrowers were experienced investors and developers looking for a loan to support the purchase of a grade II listed entertainment venue in the centre of Brighton, with the intention of applying for revised planning to include a 5* hotel within the mixed-use scheme.

The exit was development finance, once planning has been obtained, with a prestigious hotel operator was already lined up and discussions already held regarding the sale of the residential units. As this exit contained an element of speculation with the planning yet to be granted, a backup exit of refinance was provided.

As the borrower was an offshore SPV, which in turn was owned by an offshore trust, an offshore legal opinion was required – something that can prove challenging under normal circumstance let alone with the constraints of time.  Personal guarantees were taken from the company shareholders and a debenture was taken over the company.

When we are approached with cases like this it is important that we are able to leverage our existing relationships with valuers and solicitors to get the deal through quickly. In this instance we were able to work closely with a valuer we regularly use who was able to go out to site within 24 hours. Likewise, it is also important to get all the relevant information from the introducer up front and to have solicitors acting on behalf of the borrower who are able to work quickly, to ensure there are no delays.

Here at Pivot we are used to handling cases with an element of complexity, often when we are required to move quickly. If you would like to find out more about our offering, please contact our Sales team on 0203 695 5511.