Mortimer Street Capital (MSC) has orchestrated a substantial £27.5 million commercial refinance loan agreement with Leumi UK, marking a significant achievement in the bridging finance sector. This complex transaction involved a diverse portfolio including commercial properties and development sites.
- The financing request originated from a landlord and developer whose previous attempt to renegotiate terms with a clearing bank had failed, leading them to seek MSC’s expertise.
- MSC navigated multiple challenges, including non-conforming planning permissions and required a specialist valuation and legal advice to secure the best offer.
- The deal was successfully concluded within 11 weeks, demonstrating MSC’s capability in coordinating intricate financial arrangements.
- The client plans to exit through asset sales and refinancing, showcasing a comprehensive strategic approach.
Mortimer Street Capital has effectively facilitated a £27.5 million refinance loan for a client engaged in both real estate development and construction. The client faced difficulties renegotiating terms with another financial institution and thus approached MSC for a tailored financial solution. The portfolio involved assets across various legal entities, necessitating a detailed and strategic financial arrangement.
The transaction’s complexity was heightened by the inclusion of 11 securities, incorporating not only commercial properties but also residential assets, land, and development sites. Remarkably, one site already had a sale contract in place, adding layers to the negotiation process.
One of the significant obstacles was the presence of land with an outdated planning permission from 2012, which did not conform to current standards. To address this, MSC enlisted the assistance of a specialist valuer to ensure a fair market valuation was achieved. Additionally, the legal intricacies required the expertise of Numan Sultan, a partner at Gunnercooke, who advised on banking law.
The comprehensive structuring of this deal, from market evaluation to legal finalisation, was orchestrated and completed in just 11 weeks, underscoring MSC’s adeptness in managing complex financial transactions. Hiten Ganatra, the managing director at MSC, credited the successful conclusion to the collaborative efforts of all parties involved, highlighting the creative solutions provided by the team.
The client’s exit strategy is as multifaceted as the deal itself, involving both the sale of selected assets and refinancing of retained properties. This split approach not only provides financial flexibility but also optimises the portfolio’s future potential.
Mortimer Street Capital’s adept handling of this complex refinance loan underscores its expertise in bridging finance.
