A £7.55 million loan for a BMV MUFB portfolio in Sussex
A £7.55 million loan for a BMV MUFB portfolio in Sussex
The borrower, an experienced property investor, had agreed to acquire two portfolios, consisting of nine multi-unit freehold blocks. The purchase price was Below Market Value (BMV), with day-one valuations reflecting a higher aggregate value across the portfolios. To complete refurbishment works ahead of a planned refinance, the client required approximately £400k in additional funding.
Given their experience and objective to maximise leverage, we structured a facility at 90% LTC (purchase price and all costs) and
75% of LTGDV. We rolled the interest to maximise the day one borrowing, and were able to fund the full cost of works in arrears.
Quick loan overview
▪️£7.55m Gross Loan
▪️Two portfolios containing nine MUFBs
▪️BMV purchase (with works funded)
▪️90% LTC
▪️75% LTGDV
▪️9 month term
▪️Rolled Interest
▪️Loan exit: Refinance
Gareth Colston, Senior Internal BDM says: “It was a great deal to get over the line and really shows off what we can offer here at Catalyst. As you can imagine, with the complexity of the purchase along with a deal of this size, there are a lot of moving parts. We needed to be flexible with our approach to provide the right outcome for the borrower.
It was a real team effort from everyone to make this happen. A big shoutout to our underwriter Danny Scoltock, who worked tirelessly to meet the deadline for the borrower.”
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Danny Scoltock, Senior Underwriter added: “This loan came with several challenges; the simultaneous purchase of two portfolios, the need for a drawdown facility to refurbish multiple properties, and adding additional security properties when another funder let the borrower down on the day of our initial completion.
This loan would not have been possible without determination and teamwork from all those involved working seamlessly together, including the broker, the solicitors on both sides, the valuer and monitoring surveyors, coming together to deliver on a complex deal, within in a tight timeframe. Amazing work by all those involved, and a real testament to what we can do at Catalyst!”
For more information on our refurbishment loans, click here.
