Mortimer Street Capital has completed an £8.25m bridging facility to support the acquisition and repositioning of an £11m portfolio of London residential assets held across three newly formed SPVs.
The funding was provided by Lendhub and introduced and structured by Mortimer Street Capital, reflecting the advisory firm’s focus on complex portfolio transactions.
The assets were transferred from an existing ownership structure as part of a divorce settlement into three new special purpose vehicles for a single client. According to the firms, the deal required coordination across multiple entities and legal teams to ensure a single completion.
A 12-month bridging facility was arranged at 0.79% pcm. The structure enabled gifted equity to be used as the deposit and included a £900,000 day-one capital release to fund refurbishment works, drive rental uplift to market levels and support stabilisation ahead of refinance. The portfolio was income producing at completion.
The facilities were secured by first legal charges across all assets, supported by debentures and personal guarantees.
Mortimer Street Capital has been retained to arrange term funding once the refurbishment programme has been completed and rents have been stabilised.
Justin Towse (pictured), managing director at Mortimer Street Capital, says: “This transaction further reinforces our team’s strong track record in delivering bespoke finance solutions for clients with complex requirements.
“I’d like to personally thank Theo Goodman at Lendhub and the supporting legal teams for their hard work in getting this transaction over the line.”
Theo Goodman, credit manager at Lendhub, adds: “We appreciate Justin’s comments and the collaborative approach taken throughout.
“This was a transaction that required careful structuring from the outset, with multiple SPVs, gifted equity, and a day 1 capital release all forming part of a single coordinated completion.
“Our ability to assess the portfolio holistically and tailor the facility around the client’s specific needs is what made this possible.
“It’s a great example of what we can deliver on larger, more complex transactions, and it was a pleasure working alongside Justin and the Mortimer Street Capital team to get this over the line.”
