The Real Estate Advisory team has completed a £21m commercial acquisition facility to enable the purchase of a high-quality office building in Cardiff.
Case Study
FRP Real Estate Advisory closes £21m acquisition loan facility for Cardiff office asset
The Real Estate Advisory team has completed a £21m commercial acquisition facility with Shawbrook. The transaction enabled the purchase of a high-quality office building in Cardiff with strong ESG credentials, supporting an experienced asset manager’s growth strategy.
Background
An experienced asset manager sought to acquire a high-quality, modern office building in central Cardiff — a BREEAM Excellent-rated asset with strong ESG credentials. The acquisition required a £21m commercial loan facility structured to support the client’s wider growth strategy. The transaction was led by Corey Dennis, Associate Director at FRP Real Estate Advisory, working alongside lender Shawbrook, valuation specialist Newmark, and legal counsel Brecher LLP.
Action
When significant geopolitical tensions caused sharp interest rate movements, FRP Real Estate Advisory restructured the facility to protect the deal. Working alongside Shawbrook, Newmark, and Brecher LLP, the team coordinated all parties through evolving conditions to deliver the following funding package:
- Five-year term loan with a two-year fixed rate, providing cash flow certainty in a volatile interest rate environment
- LTV structured at the lower of 75% of vacant possession value or 65% of market value, maximising leverage for the borrower
- End-to-end transaction management by FRP, coordinating lender, valuer, and legal counsel through pricing adjustments and shifting timelines
- Fixed-rate pivot implemented mid-transaction in response to geopolitical market disruption, preserving the viability of the acquisition
Outcome
The £21m acquisition facility was successfully closed with Shawbrook within the required timeline. The fixed-rate structure delivered certainty for the client’s cash flow planning, while the agreed LTV terms supported the acquisition on favourable terms. The transaction marked the beginning of a new banking relationship between the client and Shawbrook, underpinning the asset manager’s continued growth ambitions.
Backed by an experienced sponsor, the facility was structured not only to fund the acquisition but also to provide the client with a 2-year fixed rate to support cash flow planning, supporting the client’s wider growth ambitions.
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