HTB funds £7m portfolio purchase

Published on

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.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Young homeowners turn to 40-year mortgages to manage costs

Two-thirds of mortgage holders aged under 30 have taken loans lasting between 30 and...

Right Mortgage sets date for first women’s leadership summit

The Right Mortgage & Protection Network will hold its inaugural Women’s Leadership Summit in...

Broadstone appoints senior banking pair as advisory demand rises

Broadstone Lending Advisory Services has appointed two senior business development managers as lenders and...

Together completes 1,000th Networks & Clubs channel case

Together has completed its 1,000th case through its Networks & Clubs channel, providing a...

Cumberland launches index tracking UK holiday let market

The Cumberland Building Society has launched its first Holiday Let Index, examining confidence, investment...

Latest publication

Other news

Young homeowners turn to 40-year mortgages to manage costs

Two-thirds of mortgage holders aged under 30 have taken loans lasting between 30 and...

Right Mortgage sets date for first women’s leadership summit

The Right Mortgage & Protection Network will hold its inaugural Women’s Leadership Summit in...

Broadstone appoints senior banking pair as advisory demand rises

Broadstone Lending Advisory Services has appointed two senior business development managers as lenders and...