Adsum funds £6 million VAT loan
Adsum, the UK’s largest specialist VAT & Tax receivables lender have announced the successful funding and completion of a £6 million VAT loan.
A central London super-prime, 5-unit development site in SW7 near Harrods, was purchased for £30 million by overseas investors to develop into luxury townhouses.
However, the development site had been “opted to tax” by the previous owner, which meant that an additional 20% of the purchase price had to be paid upon completion.
With the senior debt being provided by a major international bank, a reliable solution to fund the VAT had to be found.
The deal, introduced to Adsum by Tom Rowlands, Head of Specialist Property Finance at Pure Property Finance, had several complications to overcome and a time-critical completion date to hit.
Rowlands, Head of Specialist Property Finance, Pure Property Finance said:
“The team, and tech set up, Adsum have in place meant we were able to complete within the tight deadline and most importantly, their commercial approach meant we were able to overcome a number of challenging hurdles.”
Head of Origination at Adsum, Mike Underwood, pictured, commented:
“Having been providing VAT loans for commercial property purchases since 2018, I am fairly confident in saying that this is probably the largest single VAT transaction requiring funding that has taken place outside of specialist funds and family offices.
I am proud of my team and pleased with the way we rose to the challenge to be able provide a reliable source of a VAT loan, while using our proprietary technology to give great communication between us, the client and the team at Pure Property Finance”.