Bridgebank Capital Group has launched a new commercial investment product, which aims to improve the value of commercial property through the creation of new lease agreements. 

The new product, which is targeted at experienced property investors, provides the funding required to explore property investment opportunities where commercial leases are ‘holding over’ or close to expiry and passing rents fall below ERV.

Bridgebank says the use of a bridging loan facility, which can be secured at an interest rate from 12% per annum will enable property investors to purchase a property based on its bricks and mortar value and regear the lease arrangement, whilst bringing rental income values in line with ERV. The creation of a new lease will in turn uplift the value of the property and create a mortgageable asset, on which a commercial term mortgage can be secured.

The lenders says it has seen a number of “savvy, well experienced commercial investors” acquiring assets of this nature, with an option or lock out period. During this time, they have been able to set out leases with new or existing tenants to complete conterminously with the bridging loan advance, therefore ultimately allowing Bridgebank to leverage up to 100% of the purchase price based on the investment and tenancy profile.

The product is also available for portfolio purchases with no restriction on the number of units being purchased.

Carl Graham, sales director at the Bridgebank Capital Group, said: “At Bridgebank Capital we have seen an influx of enquiries regarding the acquisition of poorly managed properties, where there is significant opportunity to uplift the property value through the creation of lease arrangements.

“We are delighted to offer this new product to experienced property investors who have both the experience and market knowledge to achieve significant return on investment.”