Recognise Bank has completed a £1.96 million commercial property loan to support the refinance and onward development of a student accommodation scheme in Aberdeen.
The nine-month facility was agreed for an experienced property investor and developer operating in the student accommodation sector, and relates to a former office building in Aberdeen city centre that has secured planning consent for conversion into 52 self-contained student studios.
The deal was introduced by James Williams of Portway Finance and completed at 70% loan-to-value, enabling the borrower to refinance an existing lender within a tight deadline.
While the structure of the transaction was relatively straightforward, the case involved a number of considerations, including the commercial nature of the asset and an LTV towards the upper end of the bank’s lending parameters.
These factors were supported by the quality of the asset, the strength of the planning position and the borrower’s established track record in delivering similar schemes.
Timing was a key factor throughout. To meet the refinance deadline, the bank accepted a re-type of a recent valuation report and used title indemnity insurance, allowing the transaction to complete within the required timeframe.
Scottish solicitors were instructed, reflecting the lender’s experience of operating north of the border.
The transaction was completed by Richard Winston, lending manager at Recognise Bank, and managed by Sasha Holland, lending operations manager.
The lender said the deal builds on recent momentum following the completion, earlier in January, of a £556k residential bridging loan to support the renovation of an investment property in central London, while also releasing capital to support the borrower’s trading business.
Recognise Bank said its proposition remains deliberately simple, providing flexible bridging finance across residential and commercial securities.
Winston (pictured) says: “This case displayed a high level of experience across all parties. The borrower had a clear grasp of both the asset and the local market, and James and the team at Portway Finance set out the requirements clearly from the outset, allowing the transaction to progress in a controlled and structured way.
“Timing was the main pressure point, but by taking a considered view on valuation and title, and by maintaining close oversight of the detail throughout, we were able to complete the refinance within the required window and move the scheme into its next phase.”
Williams adds: “The timetable on this deal was tight, and the location and the LTV meant it needed a lender with the right appetite and experience.
“The team at Recognise Bank were clear, responsive and pragmatic throughout, which made the difference in getting this deal over the line.”
