LHV Bank has completed a £10.92m commercial investment loan to support the acquisition of a prime office building near Birmingham by a long-established family-owned property company.
The facility, provided to a special purpose vehicle, retrospectively funded the purchase of the asset, which was secured off-market at a discount to market value. The vendor prioritised speed and certainty, and the buyer moved quickly to complete, initially using bridging finance.
LHV Bank funded 82% of the purchase price, which equated to 70% of the independent market valuation. The five-year facility was structured on a 20-year amortisation profile and enabled the borrower to refinance from the bridging lender onto longer-term, lower-cost debt.
Valuation and legal due diligence were carried out in parallel to meet the timeline, ensuring the client could benefit from a strong yield from day one.
Conor McDermott, director of SME lending at LHV Bank, said: “This case was an excellent example of us taking a practical view rather than just focusing on headline figures.
“The client secured the asset below market value and needed a lender who could see the bigger picture.
“The deal team, led by Darren Switzer, were able to put together a deal that reflected the true value of the property and move quickly to help reduce their costs.
‘It’s the kind of deal that suits us – experienced investors, a strong asset, and a straightforward, solutions-led approach.”
LHV Bank is a UK-licensed bank offering SME lending solutions, fintech banking services, and personal savings through deposit partnerships. Its SME lending division provides loans from £0.5m to UK businesses for commercial investment and trading purposes.
