Adsum, the UK’s largest specialist VAT & Tax receivables lender has confirmed the successful funding and completion of a £6m VAT loan.
A central London super-prime, five unit development site in SW7 near Harrods, was purchased for £30m by overseas investors to develop into luxury townhouses.
However, the development site had been “opted to tax” by the previous owner, which meant that an additional 20% of the purchase price had to be paid upon completion. With the senior debt being provided by a major international bank, a reliable solution to fund the VAT had to be found.
The deal, introduced to Adsum by Tom Rowlands, head of specialist property finance at Pure Property Finance, had several complications to overcome and a time-critical completion date to hit.
Rowlands said: “The team, and tech set up, Adsum have in place meant we were able to complete within the tight deadline and most importantly, their commercial approach meant we were able to overcome a number of challenging hurdles.”
Mike Underwood (pictured), head of origination at Adsum, added: “Having been providing VAT loans for commercial property purchases since 2018, I am fairly confident in saying that this is probably the largest single VAT transaction requiring funding that has taken place outside of specialist funds and family offices.
“I am proud of my team and pleased with the way we rose to the challenge to be able provide a reliable source of a VAT loan, while using our proprietary technology to give great communication between us, the client and the team at Pure Property Finance”.
