Recognise Bank has completed a £1.96 million commercial property loan to support the refinance and onward development of a student accommodation scheme in Aberdeen.
The nine-month facility was provided to an experienced property investor and developer active in the student accommodation sector and relates to a former office building in Aberdeen city centre. The property has secured planning consent for conversion into 52 self-contained student studios.
The deal highlights Recognise Bank’s appetite for lending in Scotland, supported by its experience of operating north of the border and its ability to structure commercial transactions involving higher loan-to-value levels. While the asset class and LTV were at the upper end of the bank’s parameters, these were mitigated by the quality of the property, the strength of the planning position and the borrower’s proven track record in delivering similar schemes.
The transaction, introduced by James Williams of Portway Finance, completed at 70% loan-to-value and enabled the borrower to refinance an existing lender within a tight deadline.
Time pressure was a central consideration. To meet the refinance deadline, the bank accepted a re-type of a recent valuation report and used title indemnity insurance, allowing the transaction to complete within the required timeframe. Scottish solicitors were instructed, reflecting the lender’s familiarity with local legal processes.
The deal was completed by Richard Winston, lending manager at Recognise Bank, and managed by Sasha Holland, lending operations manager.
Recognise Bank said the transaction builds on recent activity following the completion earlier in January of a £556k residential bridging loan in central London, supporting the renovation of an investment property while also releasing capital for the borrower’s trading business.
The lender said its proposition remains focused on providing straightforward and flexible bridging finance across both residential and commercial securities.
Winston said: “This case displayed a high level of experience across all parties. The borrower had a clear grasp of both the asset and the local market, and James and the team at Portway Finance set out the requirements clearly from the outset, allowing the transaction to progress in a controlled and structured way.
“Timing was the main pressure point, but by taking a considered view on valuation and title, and by maintaining close oversight of the detail throughout, we were able to complete the refinance within the required window and move the scheme into its next phase.”
Williams said: “The timetable on this deal was tight, and the location and the LTV meant it needed a lender with the right appetite and experience. The team at Recognise Bank were clear, responsive and pragmatic throughout, which made the difference in getting this deal over the line.”
