FRP has secured a £3.3 million refinancing facility for a commercial property portfolio spanning London and Staffordshire, overcoming complications involving vacant office space, offshore ownership and existing debt.
The three-year facility refinances borrowing previously held with two lenders against three properties with a combined valuation of approximately £7.45 million.
The portfolio comprises two office buildings in central London, one of which is vacant, and an industrial property in Staffordshire let to a well-known consumer brand.
The new loan was agreed at 44% loan-to-value (LTV), without personal guarantees, with the lender assessing the portfolio collectively rather than underwriting each property individually.
This approach allowed the income generated by the occupied properties to offset concerns surrounding the vacant London office. The Staffordshire asset benefits from a long-term lease to an institutionally backed tenant, while the vacant office has attracted recent interest.
COMPLEX OWNERSHIP STRUCTURE
Sam Beaumont (pictured), finance adviser in FRP’s real estate advisory team, structured the transaction following a referral from the firm’s Birmingham restructuring team, which had identified the client’s refinancing requirements.
The deal involved a portfolio held within a Mauritian trust structure, introducing additional legal and ownership considerations.
Completion was also dependent on the borrower selling a separate property, with the proceeds required to reduce part of the existing debt before the refinancing could proceed.
Despite these complications, the lender agreed to provide funding without requiring personal guarantees from the borrower.
Beaumont says: “There were cheaper facilities on the market, but the client was clear that the lender’s approach – commercial, proactive, and always ready with a solution rather than a roadblock – made the difference. Despite the complexities involved, it made for a genuinely smooth transaction to deliver.
“It’s a good example of how useful FRP’s breadth can be for a client. This one came to us through our Birmingham restructuring team, who recognised the refinancing need and knew who to bring it to internally.
“That kind of internal collaboration means clients get access to the right specialists quickly, without having to go looking for them themselves.”
