InterBay, part of OSB Group, has completed on two complex multi let properties, totalling just over £10m at 75% LTV (based on investment value).
The deal provided funds to repay existing debt whilst capital raising for ongoing investment and is structured as two facilities and cross collateralised across two legal owners.
Both properties are located in the east end of London. The first is a commercial building comprising of bazaar style retail space to the ground and 1st floors, with tuition space and storage facilities to the second and third floors. The second building comprises a mix of residential and commercial space and was once a former public house. It has now been converted into a selection of small retail units on the ground floor, with nine self-contained flats above, all let on Assured Shorthold Tenancies.
Due to the size and complexity of the loan, the case was presented to the Transactional Credit Committee, which allows the application to be presented and discussed at an executive level. A number of lending policy exceptions were agreed, including a blended ICR and LTV to support the loan sizes across two legal owners, core LTV based on the open market investment value and tenants on shorthold leases. Comfort was provided after viewing operating accounts for the last five years, low occupancy voids over the same period and evidence of positive tenant demand.
Marc Callaghan (pictured), head of commercial lending at InterBay, said: “We were delighted to work with James Cassidy and the Sirius Finance team on this case, delivering a great result for them and their client.
“The InterBay team worked closely with Sirius to help provide a tailored solution for a case that not every lender would be able to handle. This case highlights the strength and experience that InterBay has in overcoming even the most complex of commercial cases.”
James Cassidy, senior associate at Sirius Finance, added: “This case is a great example of how to manage complex refinancing and was expertly executed by Sirius and InterBay.
“Shopping centres with short term commercial lease agreements come with their intricacies but our partnership continues to pay dividends, providing market-leading outcomes for our clients. We are very much looking forward to working with the InterBay team on the next one.”
