Quantum by Bridgebank Capital has completed a £10.4 million short term loan advance against a large residential investment portfolio for an experienced high net worth property professional, based in the North West.
The short term loan which has been secured against a portfolio of high end luxury residential investment apartments and houses provided the funding required to complete a negotiated settlement offered by the borrower’s existing term lender. The transaction also delivered a full and final dispute resolution settlement on certain aspects of the facility which had been challenged by the borrower.
During the underwriting and due diligence process, the Quantum by Bridgebank Capital team worked closely with the borrower, their professional team, and the legal and valuation professionals to overcome a number of issues, including an assessment of the impact of a discounted portfolio value by considering the value of the security on a block valuation basis as compared to the aggregate value of the individual units. In order to properly evaluate the impact of this challenge to be in a position to advance the funding required, the Quantum team worked with all parties to agree and facilitate the creation of long leasehold interests for each unit, from the existing freehold. This of course will also greatly assist in the remortgage exit plans to repay the bridging loan
The knowledge and experience of the Quantum by Bridgebank Capital in this instance ensured that the borrower not only secured the level of funding required to settle the outstanding facility but also, increased the marketability, residual value and refinancing capacity of the portfolio.
Due to our ability to financially engineer circumstances such as this case, it has enabled us to advance in effect a senior stretch structured loan for a period of six months.
Carl Graham, Sales Director commented:
“Jade Keval, the Business Development Manager and Chris Edwards, the Senior Credit Manager on this case, together with the Quantum by Bridgebank Capital Senior Management Team, worked extensively with the borrower and Introducer on this case to gain a detailed understanding of the existing facility, and ensure that our new facility provided the borrower with the flexibility and time required to achieve the proposed exit.