HTB funds £7m portfolio purchase

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Hampshire Trust Bank (HTB) has provided a £7 million bridging loan to help fund the acquisition of a major property portfolio.

Consisting of over 90 residential units and one commercial property, the portfolio was held within an Isle of Man-domiciled Special Purpose Vehicle (SPV).

The transaction involved the purchase of the SPV’s shares, with the client negotiating a significant discount on the portfolio’s purchase price, reducing it from £10 million to £8.6 million.

HTB structured a tailored bridging loan, integrating the portfolio and two additional properties as cross-collateral security. The financing included a part-rolled, part-serviced interest structure, providing the client with flexibility to complete cosmetic refurbishments and refinance at an uplifted value.

The share purchase structure added layers of complexity, including legal considerations for the Isle of Man SPV and a third party legal charge.

HTB collaborated closely with legal teams from Seddons, who advised on the property and corporate aspects of the transaction, as well as Nelsons and Isle of Man counsel.

Lorenzo Satchell (pictured), sales director, bridging at HTB, said: “This deal exemplifies HTB’s ability to navigate complexity with confidence and expertise. The transaction involved international legal considerations, a share purchase structure, and bespoke financing requirements, all of which required close collaboration and creative thinking.

“By working directly with the client and their legal teams, we managed each stage seamlessly, demonstrating our commitment to delivering tailored solutions that make challenging transactions possible.”

Matthew Stayt, partner at Seddons, added: “This was a complex transaction for several reasons. The borrower, a UK-registered company, was acquiring the entire share capital of an Isle of Man-registered company, and we needed to complete due diligence on 99 residential and one commercial property within a relatively short timeframe.

“Thanks to excellent collaboration between the borrower, introducer, and legal teams – alongside HTB’s commercial and practical decision-making – the transaction was successfully completed. The use of DocuSign for international signing further exemplified how this deal overcame logistical hurdles.

“This was a fantastic showcase of teamwork and innovation, and we look forward to working with HTB on future share purchase transactions.”

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