Colin Sanders

Tuscan Capital completes bridging loan for 130-property portfolio acquisition in 21 days

Tuscan Capital provided a £9m bridging facility to a developer looking to acquire a diverse portfolio of 130 mixed-use, commercial and residential real estate assets, in 21 working days.

The client had agreed to buy the portfolio from a well-known brewery which was offloading assets, with contracts exchanged on Christmas Eve in 2020.

However, the completion was stalled after the purchaser’s banking partners withdrew their support.

Tuscan Capital was contacted in mid-February 2021 to help the developer with an urgent bridging facility to meet the mid-March completion deadline.

The 12-month facility — structured as a single loan, cross-collateralised across the entire 130-asset portfolio — was agreed at less than 60% LTV on OMV.

BNP Paribas Real Estate in Birmingham was selected to lead the valuation process, while Howard Kennedy LLP was chosen to conduct the legal due diligence element.

Colin Sanders, CEO at Tuscan Capital (pictured above), said: “Turning the deal around in just 21 working days is proof that with the right team in place and a positive, proactive mindset, even the most complex of transactions can be brought to a speedy resolution.

“Richard Gill and his team at BNP Paribas Real Estate did a sterling job of valuing the portfolio inside two weeks. 

“The footwork involved in the inspection of such a wide range of assets at a time when lockdown restrictions added to the complexity of the situation was very impressive. 

“Steve Clinning [head of banking and real estate finance] and Laura Brown [senior associate] of Howard Kennedy LLP should also be credited for their outstanding team performance in the legal due diligence for the deal. 

“The deadline set from the outset looked unlikely to be achievable when presented with 130 individual properties of varying types.

“But, with Laura marshalling her team and dedicating several all-nighters to the cause, our legal element of the transaction was ready for completion ahead of that of the borrower’s.”

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