MFS closes £6.6m bridging deal for shopping centre acquisition in Greater Manchester

MFS has completed a £6.6m bridging loan for the purchase of a shopping centre in Greater Manchester.

The client was a repeat borrower who required fast finance for the acquisition of the large commercial asset — which consisted of a mix of tenanted and vacant units — via a private company.

MFS had to navigate many legal complexities, with its underwriter needing to assess the leases and agreements of the current units. 

In the process of doing so, the lender uncovered that the largest unit on the ground floor had a longstanding lease until 2070, and while that tenant had seen their trading slow down of late, the client informed MFS that a potential buyout was on the table.

Following a valuation report to address minor concerns over the age and condition of the property, MFS deemed the asset as low risk, as the property had recently undergone a thorough refurbishment.

In the end, it completed the bridging facility at 60% LTV, with a provisional exit strategy through long-term refinancing.

Paresh Raja, CEO at MFS (pictured above), said: “This is the latest in an increasingly long line of bridging loans that we have provided to clients purchasing commercial assets – it is the third loan issued to this client in 2021, all of which were used to purchase shopping centres. 

“Such properties present unique challenges, and these cases underline MFS’ various skills in handling complex situations.

“Crucially, we take into account a client’s skill and track record; the borrower has been successful when investing in many other shopping centres, so we knew they were commercially savvy. 

“We also have the expertise within our underwriting team and valuation panel to overcome potential obstacles that arise along the way. 

“All of this ensures a fast loan and high-quality service, which is why so many brokers and clients return to MFS time and time again.”

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