The loan was arranged at around 65% LTV through a bespoke commercial lender.

The properties are currently tenanted with both leases set to end in the near future.

Following the acquisition, the borrower can negotiate new lease terms, either with the existing tenants or new tenants, or potentially seek planning permission for residential purposes on the second floor, which is currently vacant office space.

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“Not many investors are inclined to buy commercial property when the rental income is guaranteed for only a short period, but it can be a powerful time to negotiate, and our client’s ability to asset manage is second to none,” said Nimesh Sanghrajka, managing director at Mantra Capital (pictured above).

“Equally, not many lenders would be comfortable providing finance against a property with such a short lease term remaining, but the bank in question is sufficiently agile and commercially switched-on to look at a deal in its entirety — and was confident in the borrower’s ability to arrange new leases or look at alternative solutions.

“[Its] ability to work with us to finance this purchase against the clock was exceptional.”