Low cost senior debt
A longstanding client required competitive senior debt to support the acquisition of a multi-let, edge of town industrial estate comprising around 60 units of varying size and tenure. Pricing and Amortisation were both key to ensure target equity returns could be realised. As a single SPV purchase the ticket size of c£5m presented its own challenge during a Covid-19 environment.
Bircroft secured funding from a mainstream lender utilising a key relationship at the bank to ensure deadlines on the purchase could be met.
Funding was delivered at 60% LTPP with 2.50% p.a. Interest and a soft repayment profile. This was sufficient to return 15% p.a. to the equity, underpinned by an asset in an outperforming sector for 2020.
- Funding against market value not purchase price
- Low interest cost given ticket size