Mortimer Street Capital (MSC) has completed its largest deal to date since launching in January this year.
It has arranged a £27.5m commercial refinance bridging loan facility with Leumi UK.
The client, a landlord and a developer who also owns a construction business, was seeking terms for a portfolio of commercial investments across several legal entities. They held a current facility with a UK clearing bank and were unable to renegotiate favourable terms, so they approached MSC to investigate other options that may be available to them.
MSC were instructed by the client to structure a facility and explore options in the market that included commercial properties, residential assets, land and development sites totalling 11 securities. Also included in the security package was a site with an existing exchanged sale contract in place. After approaching multiple funders MSC achieved a best in market offer on an 18-month term loan.
ISSUES
Challenges faced included land with extant planning permission granted in 2012 that no longer conformed to current standards. MSC recommended a specialist valuer who worked with them and the client to provide a market-based valuation approach.
MSC were able to navigate all the complexities, whilst overcoming issues such as short leases, EPC ratings and commercial rental agreements on licenses and so provide the client with the refinance required.
“The complexity of this deal makes the success of it very rewarding”
The exit strategy will be a multi-pronged approach through sale of some assets as well as refinancing of some of the properties which the client will retain.
Hiten Ganatra (pictured), managing director at Mortimer Street Capital, said: “The complexity of this deal makes the success of it very rewarding and so I am immensely proud of the Mortimer Street Capital team in getting it over the line. A huge thanks to all parties that worked on the deal, who provided a creative solution for the client.
“Since launching at the start of the year, we delivered positive outcomes for many clients with complex deals like this, plus we have harnessed relationships with a number of lenders, like Leumi UK, who may not be widely known of.”
