TAB lends £7m for Portobello Road commercial property deal

TAB has provided two connected bridging facilities totalling £7m to the same borrower to support the acquisition of two freehold commercial units on Portobello Road and the extraction of two further properties on the same street from a SIPP structure.

The deal involved the reorganisation of the ownership structure of the borrower's existing portfolio, alongside the acquisition of additional commercial property in Notting Hill via a share purchase agreement.

TAB supported the borrower across multiple connected transactions, including the movement of funds through SIPP and pension structures.

The wider transaction included the acquisition of an additional interest in one Portobello Road property for £1.5m and the purchase of two parts of another commercial property for £1.4m.

The two additional properties, also on Portobello Road, comprise freehold retail units.

These properties were acquired that had an open market value of £6m.

The properties include commercial units occupied by established businesses and operated as concessions, adding an income-producing element to the portfolio.

TAB provided two 12-month first-charge bridging facilities, supported by a personal guarantee from the borrower.

The facility gave the borrower the funding required to complete the acquisitions, restructure the existing portfolio and progress the associated SIPP and pension movements within a tight timetable.

The borrower plans to refinance onto longer-term commercial mortgages with a high-street lender following completion and the renewal of the relevant licences.

Yohann Ifrah, manager of TAB’s business development executive team, dealt with the enquiry. Senior underwriter Justice Marima handled the underwriting.

Duncan Kreeger, founder and CEO of TAB, commented: “This was a complicated set of transactions.

“We had multiple properties, a complex ownership structure and several interconnected acquisitions to complete, all within a tight timetable.

 “We had to understand the whole picture, including the existing portfolio, the new acquisitions, the income, the associated SIPP and pension arrangements.

“Yohann fielded the enquiry and issued terms with a lightning-fast turnaround. Justice handled the underwriting process with real finesse, enabling a quick and smooth completion.”

Nick Davies, legal director for real estate at Teacher Stern LLP, said: “This was a transaction with several moving parts.

“TAB took the time to understand the structure and the requirements of the transaction and was able to provide the funding needed to keep the different elements moving towards completion.”