Atom bank has completed a £3.9 million refinancing of an office in Staines-upon-Thames, Surrey, as many commercial lenders remain cautious about the sector.
The borrower refinanced its existing facility to reduce debt and monthly outgoings. The deal was introduced by Jack Grey, commercial relationship manager at P10 Financial Group.
Grey approached Atom because of the bank’s appetite for office investments, including properties outside London.
Atom says communication between Grey and Neil Findlay, senior commercial business development manager at the bank, helped the parties deal with the borrower’s change of solicitor and the establishment of new leases with the building’s tenants.
Investor demand for offices has faced pressure since the pandemic and the growth of hybrid working. Brokers have also reported reduced appetite among commercial lenders for such transactions.
Lambert Smith Hampton’s latest Regional Office Market Report identified a widening divide in rental growth prospects between prime office markets, including London and major city centres, and other regional locations.
Findlay says: “This case shows the value of clear communication. I have worked closely with Jack since he entered the industry, and having handled a series of cases together we now have a great understanding which always makes it easier to navigate complications.
“Combined with the communication from the underwriter, a case that could easily have stalled was instead completed promptly.”
He adds: “The office sector is one which some lenders are less keen on, particularly since the pandemic, but it has seen a resurgence over the last year.
“Atom bank has established itself as a lender with an appetite to support the right office cases, even if they are based outside of the capital.”
Grey, senior adviser at P10 Financial Group, says: “I often bring deals like this to Atom, because I know the pricing and appetite is excellent and the personal touch can make the difference when challenges emerge.
“With this case, whenever difficulties arose, Neil was on hand to help, while the response from the underwriter was also outstanding – they called on the day of the application to discuss the case, so we were on the same page from the get-go, which is all too rare in this industry.”
He adds: “Many lenders don’t have the appetite for cases involving offices, particularly those in non-London locations, but Atom saw the potential and was keen to support.
“The client has had some negative experiences with commercial lenders in the past, so is thrilled with how smoothly this case has proceeded and it’s a great case study for a longstanding lender/broker relationship that has led to another great success story.”
