OfficesBristol
£14.5m
Refinance of a part-let city-centre office with a £1.8m capex tranche for subdivision and re-letting.
Issue — 41% vacancy at drawdown.
What we fund
Commercial transactions we fund
Investment and repositioning, single asset and portfolio, across all commercial use classes.
01
Acquisition of let office, industrial and logistics assets
02
Retail parks, high-street parades and leisure assets
03
Vacant possession purchases bought for repositioning
04
Refurbishment and re-letting capex programmes
05
Sale-and-leaseback and owner-occupier releases
06
Portfolio refinance with individual asset release
07
EPC and MEES compliance upgrade funding
08
Change-of-use and conversion plays with consent in place
Structures
Structures we place
Everything turns on whether the income is durable enough to carry the debt, or the exit is a repositioning.
Investment facility on passing rent
55–70% of value with interest cover tested at a stressed rate, term of three to five years, sized on contracted income not ERV.
Short-term facility on VP value
For vacant or near-vacant assets, sized on vacant possession value over 12 to 24 months with a defined re-letting or sale exit.
Committed capex tranche
Refurbishment, subdivision and re-letting works drawn against certified stages, sized against the post-works rent and value.
Portfolio facility
Cross-collateralised across assets with release provisions and covenant headroom set for a planned disposal programme.
Underwriting
What lenders test
Three metrics decide commercial leverage, and one of them has become a funding condition rather than a discount.
WAULT and tenant covenant
Weighted average unexpired lease term against break dates, and the credit strength behind each tenancy. Short WAULT or a single weak covenant caps leverage regardless of yield.
Interest cover at a stressed rate
Lenders test cover at a rate well above the day-one cost, and size to the ICR rather than the LTV where the two conflict. On most current deals the ICR is the binding constraint.
EPC and MEES compliance
Sub-standard ratings are now a condition to draw rather than a valuation adjustment. Where upgrade works are needed, the cost sits in the facility with a deadline attached.
Track record
Selected commercial transactions
IndustrialSouth Yorkshire
£23m
Acquisition of a five-unit logistics portfolio, senior at 65% LTV sized on interest cover at a stressed rate.
Issue — two units within 18 months of break.
General locations, clients unnamed. Completed facility sizes, illustrative only — not an indication of terms available to you.
Questions
Common questions
General information on how these facilities are structured and placed. Not advice, and not an indication of terms.
Can you fund a vacant commercial building?
Yes, sized against vacant possession value over a shorter term with a defined re-letting or sale exit, usually with a capex tranche for the works needed to let it.
Is leverage set by LTV or interest cover?
Whichever binds first. On most current commercial transactions interest cover tested at a stressed rate is the constraint, not the loan-to-value limit.
How is an EPC below the minimum standard treated?
As a condition rather than a discount. Upgrade works are normally funded within the facility with a deadline for completion attached to the drawdown.
Do you place portfolio facilities with asset release?
Yes, cross-collateralised with release provisions and covenant headroom set around a planned disposal programme.
Enquire
Send us the asset
Asset, tenure, income position and price or facility required is enough for a first view.
Direct line
+44 (0)20 [ 0000 0000 ]