Mantra Capital secures £2.8m commercial property loan despite short lease terms
Boutique commercial finance consultancy, Mantra Capital, today announced it has arranged a £2.8m commercial loan facility at circa 65% LTV for a longstanding client through a bespoke commercial lender.
The loan was required to acquire two neighbouring commercial properties in Harrow town centre. The properties are currently tenanted with both leases coming to an end in the near future. The resultant uncertainty made the purchase terms attractive for the client.
The client can negotiate new lease terms, either with the existing tenants or new tenants, or potentially seek planning permission for residential purposes on the second floor, which is currently vacant office space.
Mantra Capital has a strong relationship with the client and is integral to the family’s entire finance function, managing all of its debt requirements. It also has a trusted relationship with the commercial lender that provided the finance.
Nimesh Sanghrajka, pictured, Managing Director, Mantra Capital, commented:
“Not many investors are inclined to buy commercial property when the rental income is guaranteed for only a short period but it can be a powerful time to negotiate, and our client’s ability to asset manage is second to none. Equally, not many lenders would be comfortable providing finance against a property with such a short lease term remaining but the bank in question is sufficiently agile and commercially switched-on to look at a deal in its entirety — and was confident in the borrower’s ability to arrange new leases or look at alternative solutions. Their ability to work with us to finance this purchase against the clock was exceptional.”