StreamBank has completed a £1.5 million bridging loan after a property investor needed to release equity from a residential asset to complete the acquisition of a £3 million shopping centre.
The 12-month facility was secured against a Grade II listed property in Ashbourne, Derbyshire, valued at £3.75 million, giving an LTV of 44%.
Commercial finance was already in place to fund most of the purchase of the shopping centre in Peterlee, County Durham, but the investor required additional capital to meet a funding shortfall within the transaction timetable.
StreamBank provided a £1.5 million net advance, with the gross facility standing at £1.647 million.
COMPLEX RESIDENTIAL SECURITY
The Ashbourne security comprises a period residence with several holiday-let units, additional land and ancillary accommodation. It is held across multiple titles, while its listed status required further legal work as part of the transaction.
Several EPC certificates also required updating following completion.
The borrower, an experienced property investor with a substantial portfolio, plans to repay the bridge by refinancing the residential security and releasing equity from other properties in the portfolio.
Aiman Maklad (pictured), business development manager for London and the South at StreamBank, says: “Complex security doesn’t necessarily mean a weak lending proposition. There were several points here that needed closer assessment, from the Grade II listed status and multiple titles through to an exit that relied on refinancing and equity elsewhere in the portfolio.
“The important thing was understanding whether those points created risks that could be managed, rather than treating them as reasons not to lend.
“The client was an experienced investor with substantial equity, a strong credit profile and more than one credible route to repayment. That gave us a good base from which to structure the facility.
“It also shows where bridging can be particularly useful – not simply funding a purchase directly, but releasing capital from one part of a portfolio to make another transaction possible within a fixed timeframe.”
