TAB completes three commercial mortgages worth over £5 million
TAB, the real estate finance and investment house, has announced three noteworthy completions as part of its commercial mortgage product, which launched last year.
The three properties totalling over £5m, include a shopping centre in Sheffield and two properties in Brixton showcasing the new product’s flexibility.
TAB has lent £2.55m to a group of three high-net-worth individuals, secured against a shopping centre located in Sheffield.
The loan was agreed at 67.24% LTV (loan-to-value) against a three-year term. The site comprises a detached retail block with additional offices and storage space.
The retail unit holds strong lease covenants, which allowed TAB to take a nuanced approach to what is typically an underperforming asset class that many lenders avoid.
A second loan of £2.42m has been lent to an existing borrower at a 68.82% LTV, over 10 years, for a highly desirable Brixton public house.
Despite a slightly higher LTV than the typical 65% product offering, TAB is working with a trusted borrower with a well-known property characterised by low risk and steady returns.
The building, originally a Savoy cinema from the 1940s, was later converted into a pub by the previous owner.
TAB has also agreed to lend £1.02m to a third borrower for the refinance of an existing loan on a property, also in Brixton.
The LTV was set at 64.95% and agreed on a 10-year term. The property comprises a four-storey mid-terraced building that contains a retail unit on the ground floor and eight self-contacted studio flats on the upper floors.
Since its September 2023 launch, TAB’s commercial mortgage product has garnered significant attention, generating over 280 enquiries totalling £272m.
Duncan Kreeger founder and CEO at TAB, commented:
“We are extremely proud of the traction our new commercial mortgage product has received so far.
Although our official LTV offering is up to 65% LTV, we continue to shape our product to suit our borrowers’ needs.
Our goal is to ensure every borrower is comfortable with their loan terms so that they can get paid in the required time frames.
Borrowers can earn discounts up to 1.25% off an exit fee of 2.5% by meeting ESG criteria, and we continue to encourage our borrowers to think about what they can do to help the environment in their actions.
We look forward to building up our loan book in 2024 and will continue to prioritise sustainability in our underwriting process.”