United Trust Bank Structured Property Finance has provided 100% funding for the acquisition of a 5000 sq ft commercial space in Nine Elms.
The loan of £1.06m was granted to Brixton Developments Limited, a property investment company, who had previously exchanged contracts off-plan in 2019.
The company secured a blue-chip tenant willing to commit to a 10-year occupational lease of the commercial space, increasing its market value to £3m.
United Trust Bank agreed to base their offer on the market value rather than the purchase price, allowing Brixton Developments to secure the necessary funding to complete the purchase.
The loan covered the deposit, SDLT, fees, and interest rolled up over the three-year term.
Adrian Carey of PIA Financial Group negotiated the suitable facility with UTB, who were able to take a commercial view to make the proposition work. Brixton Developments said that UTB made the process easy and reacted quickly to any issues that arose. While Carey added that the deal required a lender with the ability to take a commercial view, and UTB’s team was excellent throughout the process.
Gerard Morgan Jackson, Head of Structured Property Finance at United Trust Bank, added: “This was an unusual case but we enjoy working with and supporting experienced investors like Brixton Developments, who have an eye for spotting commercial and residential opportunities and the skills to add significant value to buildings and land.
“Our relationship with Adrian at PIA and our willingness to take a pragmatic and commercial view of the enhanced value of the property, enabled us to provide a competitive solution which met all of his requirements. I look forward to working with Brixton Developments and Adrian again on future projects.”
