Mortimer Street Capital has secured a significant £27.5m refinancing deal with Leumi UK, aimed at supporting a landlord and developer’s diverse property portfolio.
- The client faced challenges renegotiating terms with a clearing bank and sought better options through Mortimer Street Capital.
- MSC structured a facility encompassing commercial properties, residential assets, land, and development sites.
- A market-leading offer for an 18-month term loan was secured after engaging multiple funders.
- Complexities included outdated planning permissions and required expert legal and valuation advice.
Mortimer Street Capital (MSC) has successfully secured a £27.5 million commercial refinance bridging facility in collaboration with Leumi UK. The transaction was orchestrated to assist a client, a landlord and developer who possesses a construction business, in obtaining favourable terms for a variety of commercial investments spread across multiple legal entities. The client had encountered difficulties in renegotiating terms with their existing clearing bank and thus opted to explore alternative solutions with MSC.
MSC was entrusted with the task of structuring a comprehensive facility that encompassed a diverse range of securities, including commercial properties, residential assets, land, and development sites. A notable inclusion in this package was a site with an existing exchanged sale contract, adding layers of complexity to the deal.
After a thorough market search and negotiations with multiple funders, MSC achieved an advantageous offer for an 18-month term loan. One significant hurdle was dealing with land that possessed planning permissions dating back to 2012, which no longer conformed to current regulations. To address this, MSC recommended a specialist valuer to provide a market-based valuation approach, ensuring an accurate assessment of the property’s worth.
A specialist real estate banking lawyer, Numan Sultan, a partner at Gunnercooke, was engaged due to the intricacy of the transaction. Sultan’s expertise was essential in navigating the legal complexities of the deal, which was completed within a tight 11-week timeframe after instructing legals. The structured loan aimed to provide the client with an adaptable exit strategy, combining asset sales with the refinancing of retained properties.
Hiten Ganatra, managing director at Mortimer Street Capital, expressed immense pride in the team’s efforts to finalise this challenging deal. He credited the successful outcome to the team’s innovative solutions and strong partnerships with lenders like Leumi UK, enabling positive results for clients with complex financing needs.
The completion of this deal underscores Mortimer Street Capital’s capability in handling intricate financial structures effectively.
