Precise has completed a £1.75m net bridging facility for the owner of a group of private schools facing higher costs after VAT changes in the education sector.

The case was introduced by Sirius Finance, after the borrower chose to absorb the additional costs rather than pass them on to parents, creating a short-term need for liquidity to maintain stability across the business.

The facility was secured against an unencumbered block of five buy-to-let flats in West Kensington, valued at £2.865m.

JMW acted as legal advisers on the transaction.

Precise said the bridge provided immediate access to capital, with an exit strategy in place through the planned sale of the asset.

The lender said the case demonstrated how bridging finance can be used to address short-term funding gaps where strong security is available.

Alan Kimber (pictured), head of bridging at Precise, says: “This was a straightforward structure built around a strong unencumbered asset and a clear exit. With that in place, we were able to move quickly to release capital and support the borrower through a period of cost pressure.”

Oliver Eastgate, associate at Sirius Finance, adds: “It was a pleasure working with the teams at Precise and JMW on this facility. They were quick to understand the challenges we faced and proactive in identifying practical solutions that worked for all parties involved.

“Their commercially minded approach was instrumental in delivering a successful outcome.”