United Trust Bank (UTB) Structured Property Finance has provided an £8.5 million commercial sales bridge to support the refinancing and progression of a major care home redevelopment in West London.
The 12-month facility is secured against an ageing commercial property with planning consent for its redevelopment into an 85-bed elderly care home.
The completed scheme has an estimated turnkey gross development value of £49.1 million and a potential stabilised value exceeding £65 million.
The funding enabled the borrower to refinance existing senior and mezzanine facilities, complete the surrender of the remaining commercial leases and prepare the site for sale or forward funding.
BRIDGE SUPPORTS VACANT POSSESSION
The facility was structured by Martin Cameron (main picture, inset), business development director – structured property finance at United Trust Bank, following an introduction from Neil King of Darkwood Commercial Finance.
The borrower, Duncan Thomson, heads the special purpose vehicle, which comprises a consortium of experienced real estate investors.
The consortium acquired the commercial property after identifying its planning and redevelopment potential, subsequently securing consent for the care home scheme.
An experienced care home operator has already expressed interest in taking a long lease on the completed development, further supporting the investment proposition and proposed exit strategy.
Duncan Thomson says: “This funding provided us with the flexibility and certainty we needed to move the project forward. UTB understood both the complexity of the transaction and our longer-term objectives, working closely with us to deliver a solution that allowed us to complete the remaining lease surrenders and prepare the site for its next phase.
“Having a lender able to take a pragmatic view of the opportunity and respond quickly was invaluable and we are now progressing what will become an important addition to local elderly care provision.”
SPECIALIST FUNDING UNLOCKS SITE
Cameron adds: “This transaction reflects continued demand for specialist funding solutions supporting the healthcare real estate sector and demonstrates the value of bespoke specialist finance in helping experienced investors unlock opportunities that conventional funding may struggle to accommodate.
“By understanding both the asset and the borrowers’ exit strategy, we were able to structure a facility that met their needs and provided the flexibility required to maximise the value of the scheme.
“Demand for high-quality elderly care accommodation continues to grow, and developments like this play an important role in increasing the supply of modern care facilities. We’re pleased to have worked with Neil King and supported Duncan and the SPV at an important stage of the project’s evolution and look forward to seeing it progress.”
