Peritus Corporate Finance completes £28.7m bridging loan
Peritus Corporate Finance has announced the second loan completion for an international client for their UK property development company. The £28.7m bridging loan will enable the refinancing of a parcel of land within 30 minutes of the centre of Edinburgh and covering over 35 acres. The initial transaction with the client saw Peritus source and transact on a £6.5m land loan. The two facilities have completed within 3 months of each other with total debt of over £35m.
The loan facility was provided by a specialist fund who offered debt terms at just under 70% LTV on land with planning. The 700 unit site will now be split into plots, serviced and sold to national/regional housebuilders – with the first phase of sales already under way.
Marcus Perry, Director from Peritus commented:
“We have developed a seamless working relationship with this client, offering full origination and transaction management services to enable our client and his talented team to focus on executing their business plan.”
Darren Baker, CEO at Peritus commented:
“We have worked on a number of land assembly and pre and post planning cases this year and we have developed an expertise in sourcing and delivering highly competitive and flexible debt structures. We are also now seeing material traction in the PRS development space and are working on two large residential towers in the Midlands which will provide close to 600 new homes.”
Earlier in the month they helped a client raise equity from their unencumbered open storage site to grow their business. The deal was turned around quickly and efficiently in 12 weeks offering the client a market leading rate of 2.65% over LIBOR for 3 years at 60% Loan to Value. The site had a variety of tenants of differing covenants and lease lengths.
The property occupies a unique position 4 miles from West London. Primarily used at an open-storage facility the site benefits from excellent road and rail links and has easy access to the new Elizabeth mainline.
Although industrial and distribution properties are in high demand in the debt markets, open storage is more unusual and Peritus spent time engaging with the market to find the best partners before recommending a solution to the clients.
Darren Baker said:
“I’m delighted with the outcome on this deal. Senior Relationship Manager, Michelle Dean sourced the perfect partner to lend on this complex site. The deal was completed swiftly, 12 weeks from start to finish and offered the client an excellent interest rate. This is a perfect example of how agile Peritus is in the market, working hard to find solutions for our clients.”