Omni Capital completes £20 million ‘Super Bridge’

By Bridging Loan Directory 16th October 2012

Omni Capital, the short-term lender owned by Christian Candy-backed CPC Group, says access to guaranteed and substantial in-house funding was the key to the successful completion of a multi-million pound ‘super-bridge’ introduced by Alburys Property Finance, the Weybridge-based specialist high-net worth brokerage.

Valued at £20million, and funded solely by Omni Capital, the bridge was provided to enable completion of a high-end, multiple-unit residential development project in a prime Surrey location. Alburys acted as the sole broker.

It is thought to be one of the largest-ever bridging loans completed by a specialist UK lender.

Equipped with fresh funding provided by Omni Capital, the development is now able to move ahead with confidence after the project stalled following failed, drawn-out re-financing negotiations with its original funding partners.

Omni Capital revealed that the original funders comprised two banks providing tranches of senior and mezzanine debt respectively. Without agreement on mutually-acceptable terms, the developer faced the ‘perfect storm’ of an expiring debt situation and sharply escalating costs and fees.

The bridge provided by Omni Capital paid down both banks, the site sub-contractors and specialists, and allowed a new developer – requiring funding through a complex corporate structure – to assume control. Omni said this element of the deal’s architecture – together with the work to ensure all necessary warranties were in place – was its most nuanced, time-consuming and expensive.

While commercially-sensitive aspects of the deal are not revealed, Omni confirmed that it is structured on a compound-interest basis allowing the loan principal to be paid down as individual residential units are sold. The lender also confirmed that the loan-to-value ratio was consistent with bridging sector norms.

Colin Sanders, chief executive officer of Omni Capital, said:

“Very few bridging lenders have the funds, appetite and resources to contemplate, let alone complete, a deal of this size and complexity. We have, and we’re in the market for more.”

“Funded entirely in-house – and requiring considerable internal effort on the part of our risk team, solicitors and valuers – our financing is structured on flexible and competitive terms. We take a pragmatic approach to ensure our customers receive the right solution for their particular circumstances. Above all, we place great value on the role of the intermediary.

”In this regard, I must pay tribute to Andy Stanbury of Alburys Property Finance. His commitment and sheer professionalism have enabled us, in partnership, to overcome significant challenges and deliver a positive outcome beyond the reach of far larger, longer-established mainstream lenders.”

Andy Stanbury, director of Alburys, added:

“From a broker perspective, belief in the funder’s willingness and ability to deliver is key. From my first conversation with Martin Gilsenan, Omni Capital’s sales director, the lender showed a clear intent to do this deal, despite its size and complexity. The consistency of their position throughout the process gave me confidence, and the result shows what a broker-lender relationship can achieve.”