The facility has retrospectively funded the acquisition of a prime office building near Birmingham, secured at a significant discount to market value through a fast-tracked completion.
The borrower identified an opportunity to acquire the asset off-market at a price below valuation.
LHV Bank was able to fund 82% of the purchase price, equivalent to 70% of the independent market value.
The transaction was approved, and drawdown was completed quickly to allow the borrower to exit an expensive bridging facility.
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Legal and valuation workstreams were progressed in parallel, helping the client meet key timelines and secure a strong yield on the investment from day one.
The five-year commercial investment loan was agreed on a 20-year amortisation profile.
Conor McDermott, director of SME lending at LHV Bank (pictured above), commented: “This case was an excellent example of us taking a practical view rather than just focusing on headline figures.
“The deal team, led by Darren Switzer, were able to put together a deal that reflected the true value of the property and move quickly to help reduce their costs.
“It’s the kind of deal that suits us – experienced investors, a strong asset, and a straightforward, solutions-led approach.”
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