StreamBank completes £1.5m bridge for shopping centre

StreamBank has completed a £1.5m bridging loan to enable an experienced property investor to complete the acquisition of a £3m regional shopping centre.

The 12-month facility allowed the borrower to release equity from a residential asset in Ashbourne, Derbyshire, providing the additional capital required to complete the commercial property purchase in Peterlee, County Durham.

The loan was secured by way of a first legal charge against a Grade II listed period residence with multiple holiday-let units, additional land and ancillary accommodation. The property had an open market value of £3.75m, resulting in an LTV of 44%.

Commercial finance had already been arranged to fund the majority of the acquisition, but the borrower faced a funding shortfall. StreamBank provided a £1.5m net advance, with the gross facility totalling £1.7m.

The transaction presented several complexities, with the property held across multiple titles, and its Grade II listed status requiring additional legal review. Several EPC certificates also required updating following completion.

The borrower is an experienced property investor with a substantial portfolio and strong credit profile. The exit strategy is based on refinancing the residential security alongside the release of equity from the borrower’s wider property portfolio.

“Complex security doesn’t necessarily mean a weak lending proposition," said Aiman Maklad, business development manager for London and the South at StreamBank.

“The client was an experienced investor with substantial equity, a strong credit profile and more than one credible route to repayment. That gave us a good base from which to structure the facility.
"It also shows where bridging can be particularly useful - not simply funding a purchase directly, but releasing capital from one part of a portfolio to make another transaction possible within a fixed timeframe.”