LHV Bank has delivered a £2.3m commercial investment loan to assist with the acquisition of a UK-based hotel.
The transaction, introduced by Chris Field and Billie Cox of Sirius Finance, provided support to a borrower undergoing a strategic group restructuring of their hotel assets.
The borrower, a business with multiple trading hotels under ownership, had previously been let down by several funders and faced a critical time constraint as their existing bank had served notice.
Additionally, the purchase involved transitioning ownership from an offshore entity into a newly formed UK SPV, adding further complexity.
LHV Bank structured a commercial investment loan with a 5-year term, based on a 20-year amortisation profile.
Instead of requiring personal guarantees from the two shareholders, LHV Bank proceeded with a debenture on the SPV.
The loan was agreed at 66% of the market value.
Lee Albino (pictured), lending director at LHV Bank, said: “This transaction aligns with our strategy to support experienced borrowers and high-quality assets.
“As traditional lenders stepped back, we are perfectly placed to provide flexible financing options that enable businesses to fulfil their ambitions.
“This deal reinforces LHV Bank’s position as a key partner in the commercial property space, ensuring clients receive the bespoke support they need.”
Chris Field, director at Sirius Finance, added: “This deal underscores the importance of having a lender who truly understands the complexities of the market.
“LHV Bank’s ability to grasp the nuances of the deal and offer a solution that aligned perfectly with the borrower’s requirements was commendable.
“Working with a lender who can act swiftly while maintaining a pragmatic approach to underwriting was integral to the success of this deal, and we look forward to working with the team at LHV in the future.”
