Pallas Capital has completed an £8.4 million bridging loan secured against a Grade A office building and integrated car park in Aberdeen, supporting a refinance while the borrower awaits longer-term commercial funding.
The specialist lender provided the 12-month facility at 70% loan-to-value on a 60,000 sq ft office asset that was created through the refurbishment of a historic granite warehouse.
The transaction was completed within a month and was led by Anna Thompson, bridging originator at Pallas Capital, who oversaw the valuation and legal process.
The property was acquired in 2015 and later underwent a £16.5 million redevelopment. It is currently occupied by established corporate tenants under long-term lease agreements.
The borrower had already secured terms for longer-term commercial finance but required short-term funding after traditional banking timescales were unable to meet an immediate refinancing deadline.
Pallas Capital said its underwriting focused on the strength of the underlying asset and the security provided by the building’s tenancy profile. With lease terms extending beyond the duration of the loan and containing no break clauses, the lender based the facility on full market value rather than vacant possession.
The lender added that rental income from the property was sufficient to service the debt throughout the term of the facility.
Thompson says: “This transaction shows how flexible bridging finance can step in to provide stability when traditional banking timelines put institutional-grade commercial assets under pressure.
“Our primary focus was maintaining absolute continuity for the building’s established tenants, ensuring their day-to-day operations remained completely undisturbed.”
Pallas Capital said the transaction reflects its continued growth in the Scottish commercial property market. The deal was introduced by Raj Vilkhou, director of Express Financial Services.
