LHV Bank has completed a £10.92 million facility to support the strategic acquisition of a prime office asset near Birmingham by an SPV backed by a long-established family-run property investment firm.

The funding retrospectively financed the purchase of the asset, which was secured at a notable discount to market value through a fast-tracked, off-market transaction.

The vendor prioritised speed and certainty, creating a rare opportunity for the borrower to act decisively.

VALUE-FOCUSED

LHV Bank provided 82% of the purchase price, equating to 70% of the independently assessed market value. The facility reflects the bank’s flexible, value-focused underwriting and its appetite for supporting experienced borrowers with strong investment rationale.

In order to meet tight timelines and allow the client to exit an expensive bridging loan, legal and valuation processes were advanced concurrently. The transaction was approved and drawn down in short order, enabling the investor to lock in attractive returns from day one.

The five-year facility was structured on a 20-year amortisation profile, offering the borrower a balanced combination of cashflow efficiency and long-term planning flexibility.

BIG-PICTURE VIEW

Conor McDermott, director of SME Lending at LHV Bank, said: “This deal is a great example of our ability to take a practical, big-picture view. The client was acquiring a strong asset at below market value, and needed a lender who could move quickly and structure a facility aligned with the opportunity.”

And he added: “Darren Switzer (main picture) and the deal team delivered a solution that recognised the asset’s intrinsic value and helped the client reduce their funding costs. This is exactly the kind of transaction we like to support – experienced investors, a compelling asset, and a straightforward, solution-led approach.”