TAB has provided two bridging facilities totalling £7m to fund commercial property acquisitions and a portfolio restructuring involving properties on London’s Portobello Road.
The two 12-month first-charge facilities were provided to the same borrower and supported the acquisition of two freehold commercial units alongside the extraction of two further properties from a SIPP structure.
The wider transaction involved reorganising the ownership of the borrower’s existing portfolio while acquiring additional commercial property in Notting Hill through a share purchase agreement.
This included the acquisition of an additional interest in one Portobello Road property for £1.5m and the purchase of two parts of another commercial property for £1.4m.
MULTIPLE TRANSACTIONS
Two further freehold retail properties on Portobello Road, with an open market value of £6m, also formed part of the transaction.
The properties include commercial units occupied by established businesses and operated as concessions, providing an income-producing element to the portfolio.
TAB had to coordinate funding across the connected transactions while assessing multiple properties, ownership structures, SIPP and pension arrangements and existing and prospective income.
The facilities were supported by a personal guarantee from the borrower.
The planned exit is a refinance onto longer-term commercial mortgages with a high street lender following completion of the transactions and renewal of the relevant licences.
Yohann Ifrah, manager of TAB’s business development executive team, handled the enquiry, with senior underwriter Justice Marima responsible for the underwriting.
‘COMPLICATED SET OF TRANSACTIONS’
Duncan Kreeger (main picture, inset), founder and CEO of TAB, says: “This was a complicated set of transactions. We had multiple properties, a complex ownership structure and several interconnected acquisitions to complete, all within a tight timetable.
“We had to understand the whole picture, including the existing portfolio, the new acquisitions, the income, the associated SIPP and pension arrangements.
“The important thing was being able to support the same customer across multiple deals and keep everything moving at the same time.
“Yohann fielded the enquiry and issued terms with a lightning-fast turnaround. Justice handled the underwriting process with real finesse, enabling a quick and smooth completion.
“We gave the borrower certainty around the funding and the ability to complete the wider transaction quickly. This is a perfect example of how TAB brings momentum to lending.”
‘SEVERAL MOVING PARTS’
Nick Davies, legal director for real estate at Teacher Stern LLP, says: “This was a transaction with several moving parts. It involved an existing portfolio, a change in ownership structure, further acquisitions and SIPP and pension arrangements – all of which had to be dealt with as part of the wider transaction.
“TAB took the time to understand the structure and the requirements of the transaction and was able to provide the funding needed to keep the different elements moving towards completion.”
