Commercial Property

  • Sourcing fantastic off market investment opportunities.
  • Specialist commercial property management focusing on every aspect of an investment and dedicated to improving performance.
  • Tailor made value creation strategies.

We introduced and acquired a purpose built health and fitness club on behalf of a consortium of investors using debt finance. The property is let to a major operator on a twenty-five year lease with fixed rental uplifts.

Within two years we were able to refinance the property and repay the equity injected in full together with a £400,000 profit.

Following the market crash, the lender called an LTV breach and demanded repayment. We handled negotiations with the bank and were able to acquire the outstanding loan of £3.4m for £1.5m. The deal was structured as a loan assignment to a new company, saving a tax charge on the borrower. The investors were left with an unencumbered property with a vacant possession value equal to approximately 160% of the price paid for the loan.

We then began negotiations with several lenders and were able to raise £2m against the property, enabling the purchased loan to be repaid in full and the remainder distributed to the investors.

There is surplus cash flow over the next 5 years of £500,000 and on expiry of the loan, retained equity should be no less than £1.5m. The total projected return is £4.5m, a 300% return on equity.