Mid Lockdown Funding
Our client was paying relatively expensive interest for senior debt secured against a Commercial Office property in St Albans and keen to re-finance onto a cheaper interest rate. Due to some existing vacancy within the building Bircroft had to identify a commercially minded lender who would buy into the occupational demand and reversionary potential for the building, during a difficult Covid-19 lockdown environment.
Bircroft identified an opportunity to re-finance the subject property to not only secure a lower rate of senior interest but also move onto an Interest Only Facility (to assist cashflow) and increase the leverage from 50 to 70% LTV, in order to release equity for a new property acquisition. Covid-19 did impact on the Red Book valuation but the lender was pragmatic in their approach and ultimately delivered on the agreed Loan quantum, via an increased LTV, whilst maintaining their original pricing for the deal. Another happy client!
- Commerically minded approach to Covid-19 impact on value/income
- Short WAULT