loan to value
The borrower owned a portfolio of five freehold assets. Having assembled the portfolio with individual loan facilities , they wanted to move onto a single, flexible portfolio loan facility.
We reviewed the borrower’s asset management plan for the portfolio, confirmed ample income for interest servicing and took comfort from their strong property investment track record. A flexible loan facility was structured to refinance the existing debt and allow multiple future drawdowns based on a portfolio-wide LTV.
The client’s assets covered a 41-bed hotel, a nine-unit residential apartment block and two serviced apartment blocks providing 57 beds. They also included a site with planning permission for the development of 16 residential units.
The loan enabled the client to release equity in order to fund the development of the consented site, refurbish the hotel and serviced apartments, and acquire further assets. The flexible facility allowed the client to carry out further value-adding works on all of the assets during the term.
“We’re always keen to support clients who have identified deliverable new opportunities to strengthen their portfolios. The team delivered a bespoke loan enabling the client to forge ahead with development plans and optimise all portfolio assets.”
Dominic Gibson, Investment Director, Octopus Real Estate