The facility was structured at 80% Loan to Purchase Price (LTPP) on a 12-month bridge to secure a change-of-use with the planning.
Case Study
FRP Real Estate Advisory completes 80% LTPP Notting Hill auction acquisition
FRP Real Estate Advisory has secured a £2m bridge-to-let facility from Allica Bank for the auction purchase and refurbishment of a Victorian freehold property in Notting Hill.
Background
The asset, an end-of-terrace Victorian freehold comprising commercial studios and workshops, was acquired at auction by a prominent London-based landlord with a strong track record in West London real estate.
Action
Led by Director Cameron Hayes, the team structured a 12-month bridge-to-let facility at 80% Loan to Purchase Price to secure the acquisition ahead of a planned change of use.
- 80% LTPP achieved by evidencing a clear arbitrage between the auction purchase price, the restricted sales timeframe and the asset’s true open-market value
- Close coordination across all stakeholders to meet strict auction completion deadlines
- A structure designed to accommodate the borrower’s change-of-use and refurbishment plans within a tight completion window
Outcome
The facility gave the borrower the liquidity needed to complete the acquisition on schedule and fund a high-specification refurbishment, while demonstrating Allica Bank’s continued appetite for commercial real estate lending and its support for sophisticated landlords pursuing value-add opportunities in complex asset classes.
It was a pleasure working with the lender on this case. Getting 80% leverage on a commercial auction acquisition is a big ask, especially when the asset is vacant and end-use is speculative. The team understood the proposal and acted quickly to ensure the client could meet the auction deadlines. The client has an incredible track record in West London, so our job was to prove that the same expertise would unlock this asset. The strength of the client’s background and experience within the team was ultimately what allowed us to get this over the line within the time period the client needed.
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