Atom Bank has completed a £3.9m commercial office refinance in Staines-upon-Thames, Surrey, supporting a sector that a growing number of commercial lenders have chosen to avoid.
The borrower sought to refinance an existing facility on the Surrey office to pay down debt and cut monthly outgoings. Jack Grey, senior adviser at P10 Financial Group, brought the case to Atom bank based on the lender’s willingness to consider office deals, particularly those outside London.
The transaction was not without complications. The borrower changed solicitor during the process and new leases had to be established with the office tenants, issues that Grey and Neil Findlay, senior commercial BDM at Atom bank, navigated through close communication throughout.
The office market has grown more difficult for investors since the pandemic, with the rise of hybrid working dampening enthusiasm among many commercial lenders for the sector. Lambert Smith Hampton’s latest Regional Office Market Report highlights increasing polarisation in rental growth between prime locations, such as London and major city centres, and other parts of the country, a divergence that appears to be shaping lender attitudes further.
“This case shows the value of clear communication,” said Findlay. “I have worked closely with Jack since he entered the industry, and having handled a series of cases together, we now have a great understanding, which always makes it easier to navigate complications. Combined with the communication from the underwriter, a case that could easily have stalled was instead completed promptly.
“The office sector is one which some lenders are less keen on, particularly since the pandemic, but it has seen a resurgence over the last year. Atom bank has established itself as a lender with an appetite to support the right office cases, even if they are based outside of the capital.”
Grey said the pricing and responsiveness he had come to expect from Atom were the primary reasons for placing the deal there. “I often bring deals like this to Atom, because I know the pricing and appetite is excellent and the personal touch can make the difference when challenges emerge,” he said.
“With this case, whenever difficulties arose, Neil was on hand to help, while the response from the underwriter was also outstanding. They called on the day of the application to discuss the case, so we were on the same page from the get-go, which is all too rare in this industry.
“Many lenders don’t have the appetite for cases involving offices, particularly those in non-London locations, but Atom saw the potential and was keen to support. The client has had some negative experiences with commercial lenders in the past, so is thrilled with how smoothly this case has proceeded and it’s a great case study for a longstanding lender/broker relationship that has led to another great success story.”
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