Inspired Lending has completed a £1.38m capital raise secured against a vacant industrial asset in Brixton, with the proceeds used to settle third party creditors and partly repay a shareholder loan ahead of the property’s sale.
The lender provided a 12 month facility at 55% loan-to-value, taking a first charge over an unencumbered commercial property comprising three interconnecting vacant industrial units.
The site had previously been owner-occupied, but the business was no longer trading and the asset was being prepared for disposal.
The loan was structured around the planned sale of the property, giving the borrower time to deal with outstanding liabilities before the transaction completes.
The case was introduced by Narinder Gill, senior associate at Coreco Commercial Finance, and centred on releasing capital from a debt-free asset within a defined timeframe.
Inspired Lending said the transaction required an assessment not only of the property itself, but also of the borrower’s wider position and the need for a clear exit through sale.
The deal adds to a busy opening quarter for the lender. In January it launched a flexible funding facility aimed at property professionals and experienced investors, and earlier this month it reduced bridging rates across its range.
Inspired Lending focuses on short-term lending across capital raising, acquisitions, refurbishment and development exit, supporting borrowers on both standard and more complex cases.
Gavin Diamond (pictured), CEO of Inspired Lending, says: “Cases like this ultimately rely on consistent communication and a straightforward approach, particularly where timing and certainty are paramount.”
“The borrower needed to address a number of financial commitments while awaiting a sale of the property, and our role was to provide a structure that gave them the time and flexibility to do that.
“By fully understanding both the asset and the rationale behind the funding, we were able to move decisively at the right time.”
Narinder Gill, senior associate at Coreco Commercial Finance, adds: “On paper, this was a straightforward capital raise in structure, but with a clear need for speed and certainty given the borrower’s position.
“The team at Inspired Lending were able to take a pragmatic view on the asset and deliver a solution that allowed the client to settle liabilities and progress with the planned sale.”
