LHV Bank has provided a £2.3 million commercial investment loan to assist with the acquisition of a UK-based hotel.
The transaction, introduced by Chris Field and Billie Cox of Sirius Finance, provided support to a sophisticated borrower undergoing a strategic group restructuring of their hotel assets.
The borrower, a well-established business with multiple trading hotels under ownership, had previously been let down by several funders and faced a critical time constraint as their existing bank had served notice. Additionally, the purchase involved transitioning ownership from an offshore entity into a newly formed UK SPV, adding further complexity.
LHV Bank structured a commercial investment loan with a five-year term, based on a 20-year amortisation profile. Instead of requiring personal guarantees from the two shareholders, LHV Bank proceeded with a debenture on the SPV.
The loan was agreed at 66% of the market value, ensuring a structured and manageable financing solution for the borrower.
By offering a long-term financing structure without the need for personal guarantees, LHV Bank provided the borrower with the stability required to complete the acquisition.
Lee Albino (pictured), lending director at LHV Bank, said: “This transaction aligns with our strategy to support experienced borrowers and high-quality assets. As traditional lenders stepped back, we are perfectly placed to provide flexible financing options that enable businesses to fulfil their ambitions.
“This deal reinforces LHV Bank’s position as a key partner in the commercial property space, ensuring clients receive the bespoke support they need.”
Chris Field, director at Sirius Finance, added: “This deal underscores the importance of having a lender who truly understands the complexities of the market.
“LHV Bank’s ability to grasp the nuances of the deal and offer a solution that aligned perfectly with the borrower’s requirements was commendable.
“Working with a lender who can act swiftly while maintaining a pragmatic approach to underwriting was integral to the success of this deal, and we look forward to working with the team at LHV in the future.”
