Hampshire Trust Bank has completed a £4.49m advance to support the acquisition of two residential portfolios in South Wales through a share-purchase structure.
The transaction involved the purchase of 100% of the shares in two property companies holding a combined 65 residential properties, for a total consideration of £5.99m. The deal was introduced by Business Finance Trust, led by partner Kevin Beevers.
The funding enabled the purchaser to take immediate ownership of the portfolios, stabilise the assets and prepare for a refinance onto a specialist buy-to-let facility with HTB. That longer-term facility was assessed during the transaction and issued at completion, subject to standard conditions.
The case presented several layers of complexity. The share-purchase structure required HTB to assess both the corporate position of the two companies and the underlying residential assets. In addition, the asset schedules evolved during the transaction as the vendor progressed disposals, while the borrower required early clarity on values to support its acquisition strategy.
HTB worked alongside Glovers LLP and the borrower’s legal advisers to agree a structure that addressed the corporate and property elements in parallel. Intermediary support from Beevers helped ensure alignment between buyer and seller as the transaction developed, while early valuation input from the bank supported the borrower’s cashflow planning.
The transaction completed successfully, allowing the purchaser to begin reviewing rents, addressing vacant units and shaping the portfolios ahead of the planned refinance with HTB.
Barry Ireland, regional account manager, bridging finance at HTB, said: “This was a complex acquisition with several moving parts, so establishing the structure early was essential.
“Kevin’s early grasp of the share-purchase dynamics and his experience with cases of this type helped us align the corporate and property elements quickly.
“A key challenge was ensuring the approach worked within the borrower’s cashflow position, given that passing income was not sufficient.
“By considering the wider trading position and how the portfolios would operate post-acquisition, we were able to agree a servicing approach that supported their strategy and kept the transaction on a sound footing.
“That clarity and collaboration kept momentum throughout and allowed us to reach an outcome that worked for everyone involved.”
Beevers said: “This case needed a lender who could take a detailed but pragmatic view of how the share purchase was being structured.
“HTB were accessible throughout, and the direct conversations at each stage helped us work through changes as they arose and give the client confidence in the path ahead.
Their flexible approach to valuation and engagement was a key factor in keeping the transaction on track.”
