Karis Capital, a leading real estate debt advisory firm, has successfully structured a complex finance deal following a client’s £35M acquisition of a distressed property investment company. The UK-wide portfolio includes over 40 residential and commercial assets. The deal was led by Senior Associate Christian Artimadis, who managed the transaction from structuring to completion.
The acquired portfolio was encumbered by a £21 million 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 £22 million 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, commented: “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.”
Karis Capital’s expert knowledge and service offerings have seen their real estate finance team work alongside leading prime property developers and across high-profile projects for a number of years. Karis’s unmatched hands-on experience helps guide their clients to the best rates and lenders in the markets while also pursing maximum returns, leveraging extensive relationships with finance leaders, valuers and lawyers to ensure smooth transactions from start to finish.
