United Trust Bank’s (UTB) Structured Property Finance team was approached to refinance the debt on a large warehouse and trade counter in London.
The property, valued at £11m, is currently let below market rent to a single long term tenant and includes a rolling tenant and landlord break clause. UTB was able to provide a Day 1 loan at a competitive interest rate, by taking into account the estimated rental value (ERV), ahead of an upcoming rent review. As well as reducing the interest cost, the refinance provided the customer with sufficient time to explore various asset management opportunities, including redevelopment of the site into a residential led mixed-use housing scheme.
Interest payments are to be serviced from the passing rent with a small shortfall to be rolled up to an interest reserve within the gross loan facility.
| Borrower | Commercial Landlord |
| Amount | £6.250m |
| Loan Type | Commercial Bridge |
| LTV | 60% |
| Location | London |
| Term | 36 months |
| Loan Purpose | Refinance |
| Special Features | Refinance against ERV Interest shortfall rolled up against headroom within the gross facility |