TAB has provided a £2 million bridging loan to refinance two commercial properties in London’s Docklands, repaying the borrowers’ existing lender and releasing additional working capital for their wider business operations.
TAB secured the 12-month first charge bridging loan against two commercial properties on Selsdon Way, alongside Millwall Docks on the Isle of Dogs. The properties have a combined value of £3.025 million, giving an LTV of 66%. A language school lets both, paying combined rent of £230,000 a year.
The deal followed the borrowers’ acquisition of the freehold to the properties. The bridging loan repaid charges held by a Turkish commercial bank and simplified the security structure, while also releasing more than £130,000 for the borrowers’ wider business operations.
The borrowers plan to keep letting the properties to the language school while pursuing further lettings, which will support their longer-term refinancing plans. The borrower has an exit in place with a UK-based specialist bank, and the lender will increase its facility once further leases are signed. Senior underwriter Justice Marima handled the underwriting.
“The security, ownership structure and refinance all needed to work together on this transaction,” said Sophie Meller, senior business development manager for London at TAB. “We understood what the borrowers needed to achieve and structured the bridge around that plan.
“The facility cleared the existing lender, simplified the borrower’s position and released working capital while giving the borrower time to progress a longer-term refinance.
“A great example of bridging finance giving a borrower the time to get the next stage of a transaction in place. Think bridging, think TAB!”
“TAB understood the structure and the wider requirements of the transaction from the outset,” said Mark Sharpe, director at commercial finance broker NUCO Funding Solutions, who introduced the deal. “The borrowers needed a facility that could deal with the existing lender, the recently acquired freehold interests and the additional working capital requirement.
“TAB provided a clear route through the refinance and gave the borrowers the time they needed to progress further lettings and move towards their longer-term commercial mortgage exit. This is how you bring momentum to lending.”
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