Real Estate Advisory arranges £3.3m refinance for bank client across commercial property portfolio

A referral from FRP’s Birmingham restructuring team led to a three-year refinance at 44% LTV, with no personal guarantees, for a part-vacant portfolio spanning London and Staffordshire.

Background

The client held a commercial portfolio valued at around £7.45m, comprising two office assets in central London – one of them vacant – and an industrial asset in Staffordshire let to a well-known consumer brand. The portfolio carried existing debt across two lenders and sat within a Mauritian trust structure.

FRP’s Birmingham restructuring team identified the client’s refinancing requirement and referred the case to the Real Estate Advisory team, so the client did not need to look outside FRP for the right expertise.

Action

The transaction was led by Sam Beaumont, Finance Advisor. The team secured a facility from a lender that underwrote the portfolio as a whole rather than asset by asset. That approach gave weight to the strength of the let assets – including a long-let, institutionally backed tenant in Staffordshire – and to strong recent interest in the vacant London office, rather than the gap left by the vacancy alone.

Completion was also contingent on the borrower selling a separate property to repay part of the existing debt.

Key features of the facility include:

• A £3.3m facility refinancing existing debt across two lenders
• A three-year term at 44% loan to value (LTV)
• No personal guarantees
• Portfolio-level underwriting across assets in two regions

Outcome

The client has refinanced the portfolio into a single three-year facility without personal guarantees, completing despite the trust structure and the linked property sale.