TAB delivers £2m bridge for London’s Docklands commercial properties
By Tara SammonsFacility refinances Docklands assets and releases working capital
Section: Case Studies
TAB has provided a £2m bridging loan to refinance two commercial properties in London’s Docklands, releasing the existing lender's charges and providing additional working capital for the borrowers' wider business operations.
The 12-month 66% LTV first-charge facility was secured against two commercial properties on Selsdon Way alongside Millwall Docks on the Isle of Dogs.
With a combined value of £3.025m, the properties are let to a language school and generate combined rental income of £230,000 a year.
The transaction followed the borrowers' acquisition of the freehold to the properties.
TAB's facility enabled the existing charges, held by a Turkish commercial bank, to be repaid — while simplifying the security structure.
The transaction also released more than £130,000 in working capital for the borrowers' wider business operations.
The borrower plans to continue letting the properties to the language school while progressing further lettings.
Additional leases will support the borrowers' longer-term refinancing plans.
The borrower has an exit in place with a UK-based specialist bank.
The lender will increase its facility once further leases have been signed.
Sophie Meller, senior BDM for London at TAB, said: “The security, ownership structure and refinance all needed to work together on this transaction.
“We understood what the borrowers needed to achieve and structured the bridge around that plan.
“The facility cleared the existing lender, simplified the borrower’s position and released working capital while giving the borrower time to progress a longer-term refinance.”
Mark Sharpe, director of commercial finance broker NUCO Funding Solutions, who introduced the deal, said: “TAB understood the structure and the wider requirements of the transaction from the outset.
“TAB provided a clear route through the refinance and gave the borrowers the time they needed to progress further lettings and move towards their longer-term commercial mortgage exit.”
TAB’s underwriting was undertaken by senior underwriter Justice Marima.
Keywords: TAB, TAB bridging loan, Docklands commercial properties, Isle of Dogs refinance, London Docklands property, commercial bridging finance, Selsdon Way properties, commercial property refinance, working capital finance, 66% LTV bridge loan, Sophie Meller, Justice Marima