We recently supported a pair of experienced property developers with a multi-asset loan package comprising four loans. The structure was designed to release equity from two existing assets to fully fund the acquisition and refurbishment of two new properties.
Despite the complex nature of the deal, all four loans were completed simultaneously, enabling the borrowers to move forward with their projects on time.
The Loan Structure
Loan 1 – £1.54m Refurbishment
- Key Figures: 72% LTV, 70% LTGDV, 12 months
- Purpose: Facilitate the purchase and full, non-structural internal refurbishment
- Property: Four-storey, seven-bed, mid-terrace Victorian house in North London
- Exit Strategy: Sale of property
Loan 2 – £514k Residential Bridge
- Key Figures: 75% LTV, 12 months
- Purpose: Raise additional equity to support acquisitions related to Loans 1 and 4
- Property: Two-storey, three-bedroom, semi-detached house in South West London
- Exit Strategy: Sale of ‘Loan 1’ property
Loan 3 – £350k Residential Bridge
- Key Figures: 67% LTV, 12 months
- Purpose: Raise additional equity to support acquisitions related to Loans 1 and 4
- Property: Two-storey, four-bedroom, semi-detached house in North London
- Exit Strategy: Sale of ‘Loan 4’ property
Loan 4 – £1.6m Refurbishment
- Key Figures: 75% LTV, 58% LTGDV, 15 months
- Purpose: Facilitate the purchase and refurbishment works, comprising a single-storey extension and loft dormer conversion.
- Property: Two-storey, five-bedroom, detached house in North London
- Exit Strategy: Sale of property
Challenges
- Multi-deal complexity: This transaction involved four cross-collateralised loans, each with distinct purposes and securities. Coordinating them to run concurrently and complete simultaneously required close oversight and continuous communication with all parties involved.
- Time pressure: The borrowers had exchanged on the purchases well before the deal reached us, creating immediate time pressure to complete. This was compounded by legal delays and complexity within the wider transaction.
- Equity shortfall: Just days before completion, the borrowers encountered an unexpected equity shortfall
Solutions
- Close coordination with all parties: We maintained consistent engagement with all stakeholders throughout the process. This level of communication helped us navigate the complexities of the four-loan structure and respond quickly to any hurdles
- Hands-on support through legal challenges: When legal delays arose, we leveraged our in-house expertise to coordinate directly with solicitors, resolve outstanding issues, and keep the deal moving on schedule.
- Creative structuring and adaptability: We structured the four loans with cross-company guarantees and full cross-collateralisation, bringing the blended leverage to an acceptable level across the transaction and unlocking full funding for the borrower.
Results
Despite the complexities and setbacks, all four loans completed within a reasonable timeframe, providing the funding needed to acquire, refurbish, and ultimately sell two promising London residential assets.
This case is a testament to our ability to deliver complex, multi-asset facilities, combining hands-on deal management, responsive decision-making, and deep structuring expertise to get the job done for our clients.
