Karis Capital has arranged a complex structured finance deal following their client’s acquisition of a distressed property investment firm worth over £35m.
The portfolio includes more than 40 residential and commercial properties across the UK.
The transaction was led by Christian Artimadis (pictured), senior associate at Karis Capital, who supported his client through the full transaction process, from initial structuring to completion.
The acquired portfolio was encumbered by a £21m loan and held within a limited company structure, presenting a number of legal, financial, and operational complexities.
Karis Capital advised its client through every stage of the transaction by agreeing a competitive acquisition price, overseeing a restructure of the company to mitigate tax exposure, coordinating a settlement of all historic creditors including lenders and suppliers, whilst managing valuations of the existing assets to secure a £22m finance facility at 2.6% above the base rate.
Following the deal, the client has successfully managed to enhance the portfolio through the refurbishment of all residential units to market standards. These assets are now being transitioned to a social housing provider, generating an increased and stable income.
Christian Artimadis, associate at Karis Capital, said: “When this opportunity arose, we negotiated a suitable price to acquire the company/portfolio that would allow our client to clear the existing debts and undertake the necessary works to improve the portfolio value.
“We worked closely with the lender to provide funding for the true value of the portfolio against the price paid to acquire it, taking into account our clients work to strengthen and upscale the overall value.”
